is getting ready to launch their new issue. You want some? The underwriters will be working hard to push this deal out. And no, you shouldn't expect it to show up in the DJIA right away unless there's a government order to do so.
Most of the news Monday wasn't market friendly. Lowe's missed on earnings, the NY Fed's Manufacturing Index missed consensus and homebuilder's confidence did the same.
Tuesday's volume was pathetically light and breadth slightly positive which might ease some short-term oversold conditions.
: The action overall is uninspiring within the trading range.
MDY & IWM
: A little pop from the more oversold sectors.
QQQQ & AAPL:
Tech sector higher on the day but not spectacularly so. Are the Droid phones hurting Apple? Some think so.
Continue to U.S. Sectors, Stocks & Bonds
CSCO & IGN
: CSCO bounced right off support which is clear for all to see which in turn helped the sector.
EBAY & FDN
: EBay climbs back to previous support levels but the sector is in the range.
C & XLF
: Pretty boring within financials overall. Most of the upside in insurance while the rest of the sector does a slow fade.
AMGN & IBB
: Amgen gets rating cut which keeps IBB from much progress.
LOW & XRT
: This week many names will be featured along with WMT and HD for example. Most results thus far have been disappointing but many seem to like retail which seems odd at least to me.
GGP & IYR
: You can see clearly John Paulson's position building as GGP was well-propped throughout the 2
IEF, TLT, TIP & LQD:
Bond markets are sending a very scary and, as far as stock markets are concerned, disconnected message.
Continue to Currency & Commodity Markets
: China reportedly announced recently they prefer the euro currently. Who cares? So do hip hop artists!
: You almost have to own gold at the moment given how weird conditions are.
: Most commodity markets flat to lower Monday as grain crops seem to be doing better.
$WTIC, BP & XLE
: Energy markets are locked in their trading ranges. BP is in its own world.
Continue to Overseas Markets & ETFs
: Everything a little higher today as we melt up on light volume.
: EM's also found reason to rise Monday as they had gotten a little oversold.
The NYMO is a market breadth indicator that is based on the difference between the number of advancing and declining issues on the NYSE. When readings are +60/-60 markets are extended short-term.
The McClellan Summation Index is a long-term version of the McClellan Oscillator. It is a market breadth indicator, and interpretation is similar to that of the McClellan Oscillator, except that it is more suited to major trends. I believe readings of +1000/-1000 reveal markets as much extended.
The VIX is a widely used measure of market risk and is often referred to as the "investor fear gauge". Our own interpretation is highlighted in the chart above. The VIX measures the level of put option activity over a 30-day period. Greater buying of put options (protection) causes the index to rise.
Continue to Concluding Remarks
Many prominent hedge funds are reporting large positions in some companies and sectors. David Einhorn adds to MSFT and PFE; John Paulson adds a ton of GS and GGP, Berkshire buys more JNJ and Eton Park buys 6.6 million shares in GLD. So, these are the folks keeping markets propped even with volume very light.
This is a market with something seriously wrong--bonds in a bubble while stocks hang tough. Something's got to give.
This week is all about retailer's earnings with most companies reporting this week.
Let's see what happens. You can follow our pithy comments on
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Disclaimer: Among other issues the ETF Digest maintains positions in: TZA, FAZ, GLD, UDN, TIP and EPI.
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
Dave Fry is founder and publisher of
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