Skip to main content

Markets Stall Waiting for Data: Dave's Daily

The market barely had a pulse today. When profit-taking hit the tape just about the time for the programs to leave the station, down we went.
  • Author:
  • Publish date:
Image placeholder title

Absent much economic data and no daily dose of POMO from Uncle Sugar, markets got the blahs. Sure, there's plenty of M&A activity going on but there's also some heavy economic data on tap throughout this week. I don't know what the weather's like in your neck of the woods but its rainy Monday in New England today.

Bulls and the financial media are waiting for all that cash on the sidelines to come into markets but I'm told U.S. corporations have $1 trillion in cash parked offshore. They can't bring this in unless they pay heavy corporate taxes which they won't do based on high current tax rates. Therefore, it won't be coming to an exchange near you.

The market barely had a pulse today so when profit-taking hit the tape just about the time for the programs to leave the station, down we went. Volume was holiday light while breadth reversed Friday's 90/10 gain.

Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title

SPY

: Markets were well -- boring.

Image placeholder title
Image placeholder title

MDY & IWM

: Same story here as traders are fatigued.

Image placeholder title
Image placeholder title

TheStreet Recommends

QQQQ & AAPL

: It's hard to find much to say on a day like this.

Continue to U.S. Sectors, Stocks & Bonds

Image placeholder title

XLB

: Materials show little reaction to anything.

Image placeholder title
Image placeholder title

XLF & KBE

: The banks are struggling even as they get lubed by POMO.

Image placeholder title

XLY

: Slow day and short post.

Image placeholder title

XLI

: I could've just as easily said, "tastes like chicken."

Image placeholder title

IYR

: Many REITs are engaged in refinancing in both secondary and debt offerings.

Image placeholder title
Image placeholder title
Image placeholder title

IYT

: Southwest finds a way to fly southeast.

Image placeholder title

XLU

: Not much interest in utilities one way or another.

Image placeholder title

XLV

: Healthcare stocks fall right back to the new support level after just establishing it.

Image placeholder title
Image placeholder title
Image placeholder title

IEF, TLT & TIP

: The magical mystery tour continues.

Continue to Currency & Commodity Markets

Image placeholder title

$USD/DXY

: Argentina was another country buying dollars to cheapen their peso. That brings them in line with Peru, Brazil, Japan, and Switzerland. It's another form of a trade war.

Image placeholder title
Image placeholder title
Image placeholder title

FXE, FXF & FXY

: The Fed green lights a weak dollar and trading partners don't like it one bit.

Image placeholder title
Image placeholder title

GLD & SLV

: Options expiration this day creates some tentativeness.

Image placeholder title

DBC

: Lots of inconsistencies within typical commodity tracking indexes.

Image placeholder title
Image placeholder title
Image placeholder title

$WTIC, XLE & FCG

: Energy markets just stuck overall.

Image placeholder title
Image placeholder title

DBB & JJC

: Every market lacks conviction Monday.

Image placeholder title

DBA

: Ag markets rally with softs but held back by grains.

Image placeholder title

MOO

: Ag stocks have had a good rally but everything on Monday was in a funk.

Continue to Overseas Markets & ETFs

Image placeholder title

EFA

: Another market in a Monday funk.

Image placeholder title

EEM

: EMs are still strong based on previously rising commodity markets and better economic growth.

Image placeholder title

EWJ

: Fighting the rising yen restricting exports.

Image placeholder title

EWY

: South Korea still is rising even with Samsung reporting weakness and rumors (always present) of war with North Korea.

Image placeholder title
Image placeholder title

ILF & ECH

: Latin American markets still stronger than most.

Image placeholder title

IDX

: Indonesian markets rally strongly over the past year with only one break in May.

Image placeholder title

EWA

: Aussie market continues with many other overseas markets to create better opportunities than in the U.S.

Image placeholder title

TUR

: Turkish markets continue to rally blowing away developed markets.

Image placeholder title

EWZ

: Brazilian markets still rally with most commodities and economic growth.

Image placeholder title

EPI

: India markets make another push higher.

Image placeholder title

FXI

: Shanghai markets rally about 1.5% Monday but U.S. stocks don't follow suit.

Image placeholder title

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.

Image placeholder title

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.

Image placeholder title

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

A pretty frustrating and boring Monday that's for sure. We won't get much in the way of economic data until Thursday and Friday. You might expect this boring machine driven light volume affair to continue until then.

There's little to add to this kind of day.

Let's see what happens. You can follow our pithy comments on

twitter

and become a fan of ETF Digest on

facebook

.

Disclaimer: Among other issues the ETF Digest maintains positions in: XLI, QQQQ, MDY, IYR, XLU, MOO, GLD, SLV, AGQ, DBC, DYY, DBB, BDD, EEM, EDC, ILF, TUR, EWY, ECH, IDX, EWZ and FXI.

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.