Editor's Note: 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. Fry has devoted over 35 years to the business of trading and portfolio management. Check back each morning for the latest installment of Dave's Daily to get a unique ETF market overview.
December 17, 2009
POST FED DAY TURNAROUND
It's always more interesting when coincidences abound. Time names Bernanke "Man of the Year" the day before his senate confirmation hearings. The current Queen of Wall Street, Meredith Whitney cuts earnings estimates on Goldman Sachs and Morgan Stanley the day of Citigroup's humongous but poorly received secondary issue. This issue was designed to pay-off TARP debt which allowed the company to pay whatever bonuses they wished. But, it had the result of diluting shareholders and screwing taxpayers who own a one third of the company. The COMEX raised margin requirements yesterday on gold positions to "curb speculation" while insider J.P. Morgan maintains a large short position--gold crumbles. The dollar rallies as troubles percolate throughout the euro zone (Greece, Italy and Spain) making Uncle Buck the best house in a bad neighborhood.
Elsewhere, FedEx says things are looking great but posted worse than expected numbers; Jobless Claims were worse than expected; but, the Philly Fed Survey saw positive results.
And so it goes.
Volume was heavier today which represents a continuation of an ongoing trend of low volume up days versus heavier volume on down days. This is a negative for markets. Meanwhile, breadth was negative.
Things are looking up in After Hours trading with some good earnings from RIMM. So we'll have to see what tomorrow brings as we hit quad-witching with Da Boyz in the options pits hunting down strike prices for exercising fun and profit.
After tomorrow's expiration volume should start to taper off as we enter the holiday period.
Let's see what happens and you can follow our pithy comments on
Disclaimer: Among other issues the ETF Digest maintains positions in: VTI, TNA, MVV, XLY, XLB, IYR, URE, XLU, GLD, DBC, DBA, DAG, EFA, and EPI.
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