The day started out to the downside, as a triple punch took the starch right out of yesterday’s rebound rally, which at this point looks like a dead cat bounce. Industrial production barely grew in May, manufacturing in the New York region unexpectedly fell and consumer prices rose 0.2%, which was slightly ahead of expectations. Add to that a falling …
Major Market ETFs Move Sideways
Despite a nice start to the upside, the major markets ETFs got stuck stuck and went nowhere after meandering around the unchanged line all day. In accordance with our sell stop discipline, we sold VEU, which affected several of our model portfolios, as you will see with the next report due out on Wednesday. A few selected mutual funds were …
Major Market ETFs Plunge During Last Hour
The markets did their best cliff dive imitation during the last hour of trading and surrendered all gains of what appeared to be a nice rebound. Causing the sudden change in sentiment were comments from Fed chairman Bernanke, during which he saw the recovery as uneven and also warned against a “sudden fiscal contraction” if spending would not be brought …
Major Market ETFs Take It On The Chin
While most individual economic reports have only a limited effect on market direction, today’s triple combination of nothing but disappointing data knocked the major indexes to the mat. And, unlike many instances in the past, there was no afternoon rebound, as the chart (courtesy of MarketWatch.com) shows. First, ADP’s national employment report came in weaker than worst expectations, which now …
Major Market ETFs Succumb To Bearish Pressures
In last Friday’s market commentary, I suggested that over-indebted countries like Greece, Ireland and Portugal, among others, can’t and eventually won’t pay back the burden of continuously shouldering the mother of all indebtedness. While the ECB and most governments are still in denial of that fact, anxiety surrounding the euro zone debt drama increased over the weekend and global markets …
Oil ETFs Suffer From Demand Fear
Crude oil took a steep dive today and closed below the $100 level for the first time since the middle of March. USO, the ETF equivalent, lost 9.11% for the day. The entire commodity index followed suit with DBC dropping 6.7%, while gold (GLD) and silver (SLV) gave back 2.88% and 11.89% respectively. The dollar was the beneficiary and gained …