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 12, 2010

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FICKLE MARKETS

It's been a week marked by indecision and lots of back and forth action.  Friday was no exception as a major sell-off early was followed by buy and sell programs throughout the day.  The machines are in charge and little else matters.

Investors were keyed-up for a solution for Greece but that situation remains murky.  Thursday's rally was abetted by lower inflation data from China which stimulated buying.  Friday's report of China tightening caused investors to reverse course at least at the opening. 

But the machines would have none of this selling and we came sharply off the opening lows with irregular action the rest of the day.  Tech and small-caps led gains with a well-received restructuring of Motorola for example.

Volume was about average and breadth was positive, which given all the early selling, is surprising.

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Continue to Major US Markets

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Continue to US Market Sectors, Bonds & Beyond

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Continue to Currency & Commodity Markets

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Continue to Overseas & Emerging Markets

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Continue to Concluding Remarks

This week ends with some sloppy program driven action.  It was logical for markets to sell-off on the Chinese tightening news and perhaps not so logical for a rally to ensue.  Color me skeptical.

Berkshire Hathaway B shares were added to the S&P 500 index which created some volatility in after hours trading as index investors needed to get it into their holdings.

Next week is holiday shortened with options expiry in the mix.

Please enjoy your long weekend.  With football over we turn to the Olympics.  The men's and women's downhill races are always a thrill.

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.