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 15, 2010 CHINA FLEXES ITS MUSCLES Whether it's a confrontation with Google ( GOOG), defending the yuan peg or lecturing the US about its financial condition the Chinese are asserting themselves. This article from the Telegraph confirms the new found hubris the Chinese are now feeling. Beyond this markets on Monday were down most of the day until the trusty 2:15 PM Buy Program Express hit the tape nearly on time. This lifted most indexes out of the red. Volume was light and should remain this way until Tuesday's FOMC policy decision is released. Breadth was negative for a change. Continue to Major U.S. Markets
Clearly the Chinese are feeling their oats confronting what they believe is a weak administration and an America in decline. It's not a surprise and is something most observers had expected at some point. Markets may be quiet and tense before Tuesday's FOMC announcement. Volume continues to be light making it easy for program trades to dominate and have a greater impact. 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: QQQQ, MDY, IWM, FDN, XLF, KRE, KBE, IYR, UUP 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 .