One can never know which is which? All I know is when the underlying trend is
bullish Monday’s are often buying opportunities as things generally improve
throughout the week with perhaps some squaring-up on Friday. That’s about the
boldest observation I can make today.
What should drive prices this
shortened week are earnings reports. If poor earnings continue, as expected,
then beating lowered expectations will be the bullish game.
Since
markets were short-term overbought at the end of trading Friday, some
profit-taking or even sideways action is healthy.
What was clear by the
close is ultra light volume and breadth was negative which eases extreme
conditions.
I believe traders must be on holiday somewhere warm and
tropical. Maybe they’re at GITMO? Some, or at least their bosses, might belong
there.
It was pretty shocking to hear from subscribers that they
couldn’t buy
DBA or
DBB at Merrill Lynch, or whatever
name they’re now going by. This is one of the dumbest things I’ve heard in a
long time. Why anyone would maintain an account at a firm so behind the times is
beyond me. Not only can’t they provide excellent products to their clients, they
can’t take care of their own house.
This is a short week as you know and
some earnings will start to roll in. It will be interesting to see how these are
spun.
Let’s see what happens.
Disclaimer: Among other
issues the ETF Digest maintains positions in: SPY, MDY, IWM, QQQQ, IGM, FDN, XLF, XLI, XLY, DBV, DBC, DBA, DBB, DBC, USL, XLE, MOO, EFA, EEM, EWA, EWC, EWZ, EWY 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.
