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.

April 12, 2010

HAL 9000s KEEP DJIA AT 11K

There's no need to make this stuff up anymore since end-of-day stick saves are right there and in your face. No pretense or deception is necessary anymore. When you have "other people's money," including the taxpayers to work with; you can do what you wish and not be called-out on it. Who's going to do that anyway, the financial media?  LOL!!! Anyway, the media got the headline number they wanted and Main Street is no doubt impressed. 

Now to the hard part--earnings. Starting with Alcoa (which just reported a miss) will be followed by important companies like Intel and Bank of America.

There isn't much in the way of economic news until Retail Sales and the Fed Beige Book on Wednesday.

Monday's volume was pathetically light; so managing the market higher was easy for those who could. Breadth was positive per WSJ data below.

 

The NYMO is a market breadth indicator that is based on the difference between the number of advancing and declining issues on the NYSE.  When readings are +60/-60 markets are extended short-term.

Per Investopedia:  The McClellan Summation Index is a long-term version of the McClellan Oscillator. It is a market breadth indicator, and interpretation is similar to that of the McClellan Oscillator, except that it is more suited to major trends.  I believe readings of +1000/-1000 reveal markets as much extended.

Per Investopedia: The VIX is a widely used measure of market risk and is often referred to asthe "investor fear gauge".  Our own interpretation is highlighted in the chart above.  The VIX measures the level of put option activity over a 30-day period.  Greater buying of put options (protection) causes the index to rise.

Continue to Major U.S. Markets

Continue to U.S. Market Sectors, Selected Stocks & Bonds

Continue to ProShares, Direxion & PowerShares/DB Leveraged ETFs

Continue to Currency & Commodity Markets

Continue to Overseas & Emerging Markets

Continue to Concluding Remarks

Another ultra-light volume day with only the headline writers rewarded since not much productive happened.

Alcoa led off the earnings parade with a miss that doesn't seem to bother traders that much although now it's down a little in After Hours trading via MarketWatch:

Tuesday we'll have more earnings and only a little economic data.

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, XLB, XLI, XLY, XLF, KBE, KRE, IYR, TBF, DGP, AGQ, BDD, USD, BGU, TNA, MVV, DZK, EFA, EEM, EWJ, EWY, EWA, RSX, EPI and FXI.

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 .

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