FCIC Done; Lets Banksters Skate: Dave's Daily

The Financial Crisis Inquiry Commission (FCIC), after months of investigation, concluded this entire mortgage crisis was avoidable. Whew! Who knew?!? Bank stocks were up today despite some suggestion from the commission report of some criminal referrals. It must not have been any of Da Boyz at Goldman unless they're going after maintenance staff. Some of the elite are getting steamed as Jamie Dimon lost his cool while sipping Perrier at a panel in Davos. He didn't say he was doing "God's work," just not Satan's.

Meanwhile back at Wall & Broad markets did little overall with most excitement centered on NFLX which beat the pants off earnings estimates and rose a modest 15%. Also higher were semi's and GE.

More POMO on Thursday which is something we'll just have to get used to until June unless there's QE3.

Economic data was disappointing as Jobless Claims soared and Durable Goods orders fell. Pending Home Sales were high but on must wonder how much of these were foreclosure resales as this activity reached new highs last month.

Gold was knocked down sharply through what we've estimated as technical support as investors are scrambling out of its safe-haven appeal and into stocks... so it's said. Most commodities were dragged lower by this action.

Just at the close MSFT reported disappointing results and after the close AMZN did the same with the stock now down over 10% as this is written.

We did an interview with Tony Davidow, Managing Director, Portfolio Strategist, Rydex SGI Investments where we discuss equal weight sectors including their new emerging market equal weights which should prove interesting.

Volume was once again quite light but breadth was positive per the WSJ.

Continue to U.S. Sectors, Stocks & Bonds

Continue to Currency & Commodity Markets

Continue to Overseas Markets & ETFs

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.

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.

The VIX is a widely used measure of market risk and is often referred to as the "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 Concluding Remarks

Many stocks are lower in after hours trading given less than expected reports from both AMZN (down nearly 10%) and MSFT (off fractionally).

We'll get a peek at GDP data and Michigan Consumer Sentiment (weighted by stock prices) on Friday.

Earnings will continue with CVX, AEP, F and HON some of the featured players.

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: VT, MGV, TBF, XLF, BND, BSV, VGT, VWO, VNO, IAUY, DJCI, DJP, VMBS, VIG, TBF, ILF, EWA, EWC, EWJ, EWG, EWU, BWD, GXG, THD, AFK, BRAQ, CHIIQ, TUR, & VNM

 

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 .

 

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Dave Fry is founder and publisher of ETF Digest, Dave's Daily blog and the best-selling book author of Create Your Own ETF Hedge Fund, A DIY Strategy for Private Wealth Management, published by Wiley Finance in 2008. A detailed bio is here: Dave Fry.

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