The headline writers couldn't keep up with the late day "stick save" as most had stocks down on the day. But, editors got things changed quickly. Bulls want Dow 12,000 and with another round of
the easy money is there. It's not just us stating the obvious, Jeremy Grantham's
Pavlov's Dog on QE2
essay and even MarketWatch discussed this with "
." As far as most are concerned, even Bernanke, B still follows A and one goal of QE is to raise stock prices.
Commodity prices were lower Tuesday as oil continues to slide while precious metals fell. Remember, it's options expiration at the COMEX Wednesday so caution is advised.
Economic data was mixed with home prices falling sharply while Consumer Confidence beat expectations.
Earnings rolled in, and with few exceptions, continued to beat analysts' estimates by wide margins (What do they pay these guys?)
Volume improved dramatically from Monday while per the WSJ, breadth mixed to negative.
Continue to U.S. Sectors, Stocks & Bonds
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Continue to Overseas Markets & ETFs
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.
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.
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
The Fed is controlling this market and that was obvious Tuesday. Yes, earnings overall are good and beating estimates by a wide margin. This is the result of stock buybacks, price cutting and good overseas earnings for those so blessed. But, overall the market is in a highly manipulated state. POMO should expire in June giving the "sell in May and go away" crowd more to chew on.
More earnings Wednesday featuring BA, ADP, COP, EK, GD, UAL, UTX, XRX and many others.
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: XLF, TBF, DJP, USL, EFA, VT, MGV, BND, BSV, VGT, VEWO, VNO, IAUY, DJCI, DJP, VMBS, VIG, IEV, ILF, EWJ, EWG, EWU, BWD, GXG, THD, AFK, BRAQ, CHIIQ, TUR, & VNM
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Dave Fry is founder and publisher of
, Dave's Daily blog and the best-selling book author of
, published by Wiley Finance in 2008. A detailed bio is here: