Dave's Daily By Dave Fry, founder and publisher of ETF Digest and author of the best-selling book Create Your Own ETF Hedge Fund. March 5, 2010 EMPLOYMENT DATA SURPRISE? Friday's unemployment data was better than expected and fooled most forecasters. The set-up all week was spun by Larry Summers who indicated during the week the data would be disappointing due to snow and overall poor weather conditions. This helped bulls pump prices Friday and given previous late-day rallies this week others must have been in the know. Good job Larry! Consumer Credit also expanded as nonrevolving debt expanded sharply caused by autos, boats and student loans for example. Revolving debt continues to shrink as credit card debt may be maxed-out. Volume was light for all the bullish action which remains a sticking point for many. Breadth was quite positive per the WSJ data below. Continue to Major U.S. Markets
Markets rallied sharply on employment data which beat expectations. Not mentioned is, excluding seasonal adjustments (those who've given up looking for work), the unemployment rate is 16.3%--close to a record high. But, no one likes a party pooper today. The only flies in the ointment are high PEs and short-term overbought conditions which most don't seem interested in currently. 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: MVV, TNA, QLD, UUP, UCO, XPP and DGP. 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 .