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NO "BIG WEDNESDAY" FOR MARKETS

January 09, 2013

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If I said markets stabilized you’d think me a realtor describing current conditions. But we rallied slightly taking back some of Tuesday’s losses but still mostly down on the week.

Alcoa’s (AA) earnings report did little for the stock’s price but the materials sector (XLB) rallied overall. Holding markets back were financials (XLF) and banks (KBE) (BAC) as worries over forthcoming earnings results have made investors nervous. Technology (XLK) eked-out some gains despite ongoing selling in heavyweight Apple (AAPL) as sector rotation remains in play while software (IGV) and internet rallied (FDN).

The dollar (UUP) was slightly higher due mostly to a decline in the yen (FXY). Gold prices (GLD) weakened once again as did oil (USO) and commodity prices (DBC). Along with commodity results you might check out Darin Newsom’s comments regarding the outlook for agricultural commodities. Bonds (TLT) were slightly weaker as stocks came back Wednesday.

Overseas markets (EFA) and (EEM) for example moved along higher with U.S. sectors as correlations remain high. There may still be some rotation back to U.S. markets from outperforming overseas markets now the fiscal cliff has passed.

There was little economic news aside from energy inventories which were somewhat bearish overall. More data will follow Thursday with Jobless Claims but little else as the week evolves.

Volume was absurdly light as investors are holding their fire for more earnings news. Breadth per the WSJ was positive.

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  • NYMO

    NYMO

    The NYMO is a market breadth indicator that is based on the difference between the number of advancing and declining issues on the NYSE. When readings are +60/-60 markets are extended short-term.

  • NYSI

    NYSI

    The McClellan Summation Index is a long-term version of the McClellan Oscillator. It is a market breadth indicator, and interpretation is similar to that of the McClellan Oscillator, except that it is more suited to major trends. I believe readings of +1000/-1000 reveal markets as much extended.

  • VIX

    VIX

    The VIX is a widely used measure of market risk and is often referred to as the "investor fear gauge". Our own interpretation is highlighted in the chart above. The VIX measures the level of put option activity over a 30-day period. Greater buying of put options (protection) causes the index to rise.

  • SPY 5 MINUTE

    SPY 5 MINUTE

  • SPX WEEKLY

    SPX WEEKLY

  • INDU WEEKLY

    INDU WEEKLY

  • RUT WEEKLY

    RUT WEEKLY

  • QQQ WEEKLY

    QQQ WEEKLY

  • AAPL WEEKLY

    AAPL WEEKLY

  • FDN WEEKLY

    FDN WEEKLY

  • IGV WEEKLY

    IGV WEEKLY

  • IBB WEEKLY

    IBB WEEKLY

  • XLB WEEKLY

    XLB WEEKLY

  • XLB WEEKLY

    XLB WEEKLY

  • BAC WEEKLY

    BAC WEEKLY

  • KBE WEEKLY

    KBE WEEKLY

  • XLF WEEKLY

    XLF WEEKLY

  • IYR WEEKLY

    IYR WEEKLY

  • CVY WEEKLY

    CVY WEEKLY

  • TLT WEEKLY

    TLT WEEKLY

  • UUP WEEKLY

    UUP WEEKLY

  • FXY WEEKLY

    FXY WEEKLY

  • GLD WEEKLY

    GLD WEEKLY

  • SLV WEEKLY

    SLV WEEKLY

  • DBB WEEKLY

    DBB WEEKLY

  • DBC WEEKLY

    DBC WEEKLY

  • USO WEEKLY

    USO WEEKLY

  • DBA WEEKLY

    DBA WEEKLY

  • EFA WEEKLY

    EFA WEEKLY

  • EEM WEEKLY

    EEM WEEKLY

  • EWA WEEKLY

    EWA WEEKLY

  • EWJ WEEKLY

    EWJ WEEKLY

  • EWG WEEKLY

    EWG WEEKLY

  • EWS WEEKLY

    EWS WEEKLY

  • EWW WEEKLY

    EWW WEEKLY

  • THD WEEKLY

    THD WEEKLY

  • VNM WEEKLY

    VNM WEEKLY



Closing Comments

The only conclusions we can draw from current action is that we ran too far too fast on the upside and investors are holding back awaiting earnings from financial companies in particular.

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Disclaimer: The ETF Digest maintains active ETF trading portfolio and a wide selection of ETFs away from portfolios in an independent listing. Current “trading” positions in active portfolios if any are embedded within charts: Lazy & Hedged Lazy Portfolios maintain the follow positions: VT, MGV, BND, BSV, VGT, VWO, VNO, IAU, DJCI, DJP, VMBS, VIG, ILF, EWA, IEV, EWC, EWJ, EWG, & EWU.

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. More detailed information, including actionable alerts, are available to subscribers at www.etfdigest.com.

 



Disclaimer

Among other issues the ETF Digest maintains positions in: MDY, IWM, QQQQ, UDN, GLD, DBC, DBB, DBA, USL, EFA, EEM, EWZ 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. More detailed information, including actionable alerts, are available to subscribers at www.etfdigest.com.