I just cautioned markets were much overbought yesterday and, wham!, down we go.
Some thought and complained this was a “relative term”. Now we all have some
annoying relatives but I guess today’s market action was what I was cautioning
about relatively speaking.
Officials have been saying the economy had
hit a “soft patch” and like our penguin friend, today’s data and news
highlighted the troubles.
Market volume remains heavy while breadth was
as negative as you’d expect.
Our friends at the Fed tossed in another $19 billion to
primary dealers Da Boyz today.
The above are the dominant market sectors from an
investor focus but there are others of interest naturally.
“The week’s not over”, may be one of our more popular
refrains and cautions but this week it takes on heightened importance given the
volatile two-way action. Making snap judgments based on one day within a week
can be misleading and bad for your emotional and financial well-being. So, try
to stand back a little from the din of market mavens and certain TV programs
especially.
It’s also important to remember that it’s not necessarily a
good thing that commodity prices are falling sharply. While being positive in
potentially reducing future inflation data, it also signifies economic weakness
and stress.
Have a great weekend.
Disclaimer: Among other issues
the ETF Digest maintains long or short positions in: MZZ,
IWM, TWM,
QQQQ, QID, SMN,
IEF, PST,
TLT, TBT,
GLD,
DBP,
EFA, EFU,
EEM, EEV,
EWZ,
RSX,
FXI and FXP.
