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 11, 2010 CITIGROUP LEADS BULL CHARGE A little hint Thursday from Citigroup's CEO Vikram Pandit of "slight growth" in 2010 year set bulls to a buying panic. Citigroup's stock accounted for one quarter of volume on the NYSE on Thursday said some reports. This took stocks out of a becalmed state and sent indexes soaring into the close. Bulls brushed off employment data showing high continuing claims and worries about inflation in China. Also in a period when future interest rate increases are assumed a given, the US Treasury sold 30-year bonds at auction today and met high demand. Did you want some? You go first. Volume was light even with Citigroup's 1 billion shares traded. Breadth was again positive per the WSJ. Continue to Major U.S. Markets
So many markets, so little time--but, you get the idea. There's a bid under the market occasioned by the spiked punchbowl still being served by the Fed. We've seen for the past 10 trading days or so pundits pumping financials. Today it didn't take much to stampede anxious bulls with Citigroup seemingly innocent comments. I'll bet there are many CEO's surprised by reactions their comments cause. If you take away Citigroup's shares from trading Thursday there wouldn't have much volume at all. Traders cared less about China's inflationary news or ongoing Jobless Claims. They cherry picked the news they wanted and ran with it. Even higher interest rates were regarded positively reflecting strength in the economy. Friday is Retail Sales and Consumer Sentiment. These could move markets depending on the data and how it's spun. 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: MDY, MVV, IWM, TNA, IBB, KBE, KRE, and UCO. 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 .