Updated from Tuesday, Jan. 19Dave's Daily By Dave Fry, founder and publisher of ETF Digest. January 19, 2010 SCOTT BROWN--GAME CHANGER? Scott Brown won on Tuesday and the stock market rallied on the back of the Health Care sector prior to his victory. Almost every other sector came along for the ride. The thinking must be ObamaCare is dead and perhaps the perceived spending binge will at least be contained. Is this why the dollar also rallied? Also, it may be that Friday's big sell-off was just an options expiration related event. Volume was still on the light side certainly compared with Friday's which continues a trend of higher volume on down days and the opposite on rallies. Breadth was quite positive. Continue to Major U.S. Markets
Just like Friday's option expiration sell-off was a one-off day perhaps Tuesday's rally was just another outlier caused by an election--the official results are not even known yet.
Earnings are on tap and expect a heavy roll-out from some important names all week with Google winding things up. I'm on the road and can't provide the same breadth of coverage since landing in Atlanta just in time to set-up the computer with some difficulty. Why are different hotel chains so unique about internet connectivity? It drives me nuts sometimes. Let's see what happens and you can follow our pithy comments on twitter. Disclaimer: Among other issues the ETF Digest maintains positions in: FAS, SEA, GLD and EFA. 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 .