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Dave's Daily: Markets Crumble

Market and ETF expert Dave Fry says the stock market's collapse today doesn't mean a sharp reversal necessarily. This edition of Dave's Daily also looks at Intel, Cisco, Bank of America, Visa, Target and other stocks and ETFs.
Author:

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 4, 2010

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MARKETS CRUMBLE

This wasn't very nice day for bulls now was it?   I've been posting DeMark's monthly sequential 9 count indicating trend exhaustion was at hand for some time now.  This doesn't mean a sharp reversal necessarily; generally it just indicates there will be a reaction of indeterminate scope.  Below is the chart for SPY (S&P 500 ETF) and please know that this appearance is similar for most major market sectors whether in the US or overseas.

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Forget about earnings evidently is today's watchword.  CSCO reported good earnings and the stock was up a little but the networking sector it's in was overwhelmed by negative overall sentiment.  The same can be said for Visa.  The worries were primarily over potential sovereign PIGS defaults (Portugal, Ireland, Greece and Spain) combined with poor Jobless Claims data from the US.

Volume was heavy again on selling and breadth was close to a 10/90 negative day.  Others will calculate that better than me but below is the current WSJ version.

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Continue to Major Market Sectors

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Continue to US Sectors & Bonds

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'

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TheStreet Recommends

Continue to Currency & Commodity Markets

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Continue to Overseas & Emerging Markets

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Continue to Concluding Remarks

That was an interesting day to say the least.  Someone came in with a last minute "stick save" to put the DJIA over 10K which was interesting.  You see the DJIA is merely window dressing for tourists and most of America, and the world for that matter, watch it.  But the real tell is always what happens in Small-Caps and the S&P 500 for example. 

Friday is the much manipulated unemployment data replete with seasonal adjustments and fictitious birth/death models.  Jobless Claim Thursday probably told the real story.  No matter, what we'll see Friday should be viewed as old news since the focus today was on European sovereign issues combined with confusion over economic growth going forward.

Earnings again are being sold for the most part and commodities are taking a beating. 

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.

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

.

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.