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 18, 2010

THE PUNCHBOWL REMAINS SPIKED

 

Thursday's Jobless Claims dropped slightly but at 457K it's still a high number.  Leading Indicators were positive but as expected, while the Philly Fed survey was a little stronger than expected.  

Back in the news today was Greece with thoughts the previous deal was now unraveling.  That lifted the dollar once again while pushing commodities lower with the exception of gold which is in a state of confusion.

Positive earnings news from FDX lifted it and the transportation sector.  Also the company announced it would buy more planes from BA which helped boost that stock.  NKE reported good results and we must have new expensive shoes in the spring.

Then there's the health care nonsense that seems to know no end.  Health Care stocks rallied today even though the votes might be there for passage--they must be getting their own kickback.

The bottom line Thursday still seems while markets are much overbought, the punchbowl remains in place so dip-buying and program trading continues apace. 

Continue to Major U.S. Markets

Continue to U.S. Sectors, Stocks of Note & Bonds

Continue to Currency & Commodity Markets

Continue to Overseas & Emerging Markets

Continue to Concluding Remarks

The punchbowl remains well-spiked and stocks can continue to rise.  Conditions are still much overbought but they can remain that way for longer than most expect. 

Friday is quadruple witching and all kinds of weird things can happen.  For example, options traders will hunt down strike prices causing exercise for fun and profit.  None of this type of behavior is based on fundamentals or anything else one might expect.  Thursday rumors circulated in Chicago trading pits of surprise discount rate hike.  This is something some traders would do to make some easy money during quad-witching. 

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, IWM, QQQQ, XLI, XLY, XLF, IYR, DVY, UUP, EWC and EPI.

 

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 .