Hugging The Flat Line

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Yesterday’s early morning sell off was met with some bottom fishing, the markets rallied, fell back and ended up just about unchanged.

Bonds continued their upward move, gold (incorrectly quoted above) gained almost 1% while oil dropped again. We’re still in no man’s land as far as domestic equities are concerned, which makes it a moot point to take any new positions here.

The best news of the day was the fact that the markets did not fall apart after a weak opening. Overall economic news included a weaker than expected Japanese GDP, slowing domestic manufacturing orders and low builder sentiment, which simply confirms that there is not a lot of growth potential out there.

The economy is faltering albeit at a slow pace, which means that bulls and bears will still have to battle it out before a winner can be announced. Right now, bond funds/ETFs are the place to be as they seem to display the only clearly definable upward trend.

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