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 30, 2010

DEBT TIME BOMB SLOWS BULLS

Tuesday's economic data was better than expected with Consumer Confidence and unremarkable housing data; but, an early market rise was restrained by an all-too-familiar villain -- sovereign risk issues. These aren't going away anytime soon.   While some sectors will do well as economic growth takes hold the global debt time bomb will bob to the surface to shock investors. It's hard to imagine how many years this condition will haunt investors, taxpayers and governments. Tuesday, Iceland suffered credit rating declines, Irish banks were being bailed-out and Greece could only sell half its bond issue. So, thoughts of a resolution for the latter lasted a day.

Volume again was very light while breadth was modestly positive. 

Continue to Major U.S. Markets

We hit the finish line tomorrow for the first quarter. There seems little risk those able to protect their positions won't be successful. It's too pat.

ADP Employment Change, Chicago PMI and Factory Orders are on tap for Wednesday.

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, XLY, XLB, XLF, XLI, IYR, DVY, TBT, UUP, EUO, YCS, USL, EFA, EWA, EWC, EWY, EPI and HAO.

 

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 .