Dave's Daily

By Dave Fry, founder and publisher of ETF Digest.

January 15, 2010


SELL THE NEWS

You could say Intel's ( INTCl)great report was already baked-in to prices so selling the stock shouldn't surprise. What surprised me about Friday? It was also options expiration which I'm usually keenly aware of but for some reason it didn't register as the third Friday of the month already. As you know, options expiration can create a lot of mischief with motives only those in the options pits know. They'll hunt down strike prices like a Predator Drone disadvantaging many while lining their pockets.

No one was cheered by JPMorgan's ( JPM)report. Naturally, if you look inside the numbers you'll find most of the earnings came from trading. Borrow at zero and give it to trading desks and let the machines do the rest.

Once again the pattern of heavy volume of selling and light volume on rallies continues which strikes most negatively. Breadth was as poor as one would expect with the data from WSJ below.

Continue to Major U.S. Markets

Well, maybe Snoop Dog sums things up best for the week.

An old caution is worth mentioning. It used to be common for markets that closed sharply lower ahead of three day weekend to open the next trading day with a sharp gap lower. It hasn't been that reliable of late.

A tsunami of earnings lie ahead, but it's not a good sign that good earnings get sold especially when markets are as overbought as this market is now.

By the way, if you're in the Atlanta area I'll be giving a talk at the American Association of Independent Investors there on the 20 th. A link mentioning it is HERE.

Let's see what happens and you can follow our pithy comments on twitter.

 

Disclaimer: Among other issues the ETF Digest maintains positions in: VTI, FAS, XLY, XLI, XLU, SEA, GLD, DGP, DBC, EFA and XME.

 

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.

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