We got the bounce I expected early from oversold conditions but it didn't last and it may have been wasted buying power. Mr. Market, it seems, is just as pessimistic as me. Bernanke didn't offer anything new in his speech today other than blaming high oil prices and repeating the theme that current problems are "transitory". Despite not offering any future solutions, existing POMO activities continue adding $14 billion over the past two days. This isn't chicken feed so maybe, the poor performance of bank stocks means the money will be used to beef-up balance sheets versus trading stocks. That would be something. Bonds were slightly higher given all the POMO, the dollar faded once again, energy markets were flat to higher and commodities overall were higher. Volume eased from Monday but breadth per the WSJ was mildly positive. You can follow our pithy comments on twitter and become a fan of ETF Digest on facebook. Continue to U.S. Sector, Stocks & Bond ETFs
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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
There was little corporate news Tuesday. We got the initial bounce but bulls were waiting for Bernanke to give hints of more QE beyond June's expiration. As Goldman Sachs later stated, the Fed's in a "zone of inaction". That was a letdown for bulls. No market has never rallied much with financials this weak and there must be another shoe to drop from this sector. Markets were short-term oversold and not so much now judging by the NYMO. Wednesday is the Beige Book which should just add more on economic conditions. Let's see what happens. Disclaimer: The ETF Digest maintains active ETF trading portfolio and a wide selection of ETFs away from portfolios in an independent listing. Current positions if any are embedded within charts. Our Lazy & Hedged Lazy Portfolios maintain the follow positions: VT, MGV, BND, BSV, VGT, VWO, VNO, IAU, DJCI, DJP, VMBS, VIG, ILF, EWA, IEV, EWC, EWJ, EWG, EWU, BWD, GXG, THD, AFK, BRAQ, CHIQ, 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 .