Dave's Daily

By Dave Fry, founder and publisher of

ETF Digest

and author of the best-selling book

Create Your Own ETF Hedge Fund.

February 23, 2010

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CONSUMER CONFIDENCE TAKES A HIT

Round and round we go and where we stop does anyone know?   Retailers reported mostly better than expected (shocking!) results but offered cautious (wimps!) outlooks.   The hammer was put down on bulls when Consumer Confidence dropped precipitously (um, below expectations?) to only 46 from 56.  So, just when we were wondering if Chucky the Consumer you can't kill had another sequel in him, things went wrong for the little beast.

The Case-Shiller home price gauge dropped 3% along the lines of estimates.  Further the FDIC reported a continuing rise of troubled banks while Turbo-Tim mulls expanding a supplementary financing program. 

Jesse's Café Americain

has the latter issue nailed for the bailout it is. 

Volume was heavier than previous rally days again and breadth was quite negative.    

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Continue to Concluding Remarks

Well that was an interesting way to spend Tuesday.  The magnitude of the drop in Consumer Confidence shocked bulls who would ordinarily shrug off such data.  The funny thing is Consumer Discretionary sectors did relatively well considering.  Perhaps some bulls are just programmed to buy every dip no matter what.

The only thing that is disturbing currently is the prospect of a trading range environment where progress in either direction is limited.

Wednesday will feature New Home Sales and the tail-end of earnings.

Let's see what happens and you can follow our pithy comments on

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Disclaimer:  Among other issues the ETF Digest maintains positions in: UUP & TBT.

The charts and comments are only the author's view of market activity and aren't recommendations to buy or sell any security.  Market sectors and related ETFs are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period.  Chart annotations aren't predictive of any future market action rather they only demonstrate the author's opinion as to a range of possibilities going forward. More detailed information, including actionable alerts, are available to subscribers at

www.etfdigest.com

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Dave Fry is founder and publisher of

ETF Digest

, Dave's Daily blog and the best-selling book author of

Create Your Own ETF Hedge Fund, A DIY Strategy for Private Wealth Management

, published by Wiley Finance in 2008. A detailed bio is here:

Dave Fry.