NEW YORK ( ETF Digest) -- As Marc Faber reported Monday, two separate packages of over $1.3 trillion LTROs (Long-Term Refinancing Operations: dba "bailouts") in the U.S. & Europe are bullish for stocks. Further, rumors remain the Bank of Japan is privately conducting similar operations and no one really knows what the Chinese (PBOC) are doing. ISM Mfg Data (53.4 vs 53.2 expected & prior at 52.4) indicates continued slow and steady economic expansion. Unfortunately prices paid remains higher at the same time. Construction Spending (-1.1% vs .7% expected & prior -.8%) was lower and some blamed this on the weather which isn't intuitive. Stocks rallied as the new quarter began on the back of ISM data primarily and secondarily as new funds get reinvested to begin the month and quarter. Tech once again led markets higher with Apple (AAPL) recapturing its momentum after Friday's selling. Perhaps some were thinking and there were some rumors some index rebalancing could occur which would hurt the shares and indexes where it's a heavyweight. The rally was fairly widespread with only homebuilders (ITB) down on weaker Construction Spending. As commodity prices rebounded on ISM data, materials (AA & XLB) strengthened Oil (USO) prices rallied nearly 2.2% on back of the ISM report. The dollar was slightly weaker and commodity prices (GLD, JJC & DBC) rallied overall. Bond prices rose modestly even as stocks rallied. Meanwhile in Europe economic conditions continue to deteriorate. Unemployment has climbed to a 15 year high with nearly 17 million out of work. Further there is more bailout and restructuring chatter regarding Spain, Italy and Greece. In China a contraction remains underway which should be bearish for emerging markets but not Monday as prices rose. Perhaps some late-day selling in equities came after the Royal Bank of Canada was accused in a CFTC lawsuit of a massive and illegal trading scheme. Insiders continue to sell into strength but the chart below doesn't necessarily breakout the details. Nevertheless, what do insiders know we don't? Volume was moderate but the heaviest selling came into the close. Breadth per the WSJ was quite positive. Join the banter with us on twitter and facebook. SPY - The SPDR® S&P 500® ETF is a fund that, before expenses, generally corresponds to the price and yield performance of the S&P 500 Index. Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs.
See more details IWM - The iShares Russell 2000 Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the small capitalization sector of the U.S. equity market as represented by the Russell 2000 Index. The index represents the approximately 2,000 smallest companies in the Russell 3000 Index.
See more details QQQ - is an exchange-traded fund based on the Nasdaq-100 Index ®. The Fund will, under most circumstances, consists of all of stocks in the Index. The Index includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization. The portfolio is rebalanced quarterly and reconstituted annually. See more details