Bad News Is Either Transitory Or Minor
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December 17, 2014

12-17-2014 6-57-46 PM Yellen

The Fed did and said nothing today about Russia (it’s small), oil prices (transitory), interest rates (data dependent) and the economy (growing modestly).

Most interpreted the Fed and Yellen’s boring news conference as dovish. This allowed bulls to rally stocks sharply and even the week’s decline was taken back. The bulls will probably spin all this as a reason to launch the much delayed Santa rally.

The most shorted sectors (energy and emerging markets for example) rallied the most as bulls are overjoyed that happy days are here again.

Meanwhile the Russia launched another Ruble saving plan through the Russian Central Bank as allowing credit institutions to delay marking debt to market which then allows them to mark debt to cost. This seemed to work for now as the Ruble and Russian stocks rallied more than 10%.

Elsewhere in Greece (them again) the current leader lost his election throwing the government into chaos once more, but that’s for another day…as in January. Obama got up this morning, looked in the mirror, pondered who he could piss-off today and decided to end over 50 years of Cuban isolation.

So put you worries aside folks and go shopping. Yellen said these large drops in crude oil prices were a gift to American consumers and brushed-off likely troubles for energy producers and their employees.

Leading market sectors higher included: Everything (this is getting easy now).

Leading market sectors lower included: Bonds (TLT), Euro (FXE), Yen (FXY) and Gold (GLD).                                                      

The top 20 market movers by percentage change in volume whether rising or falling is available daily.

Volume was heavy as shorts were squeezed and Yellen minimized any global fears. Breadth per the WSJ was positive.

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12-17-2014 6-58-29 PM Diary

Charts of the Day
  • SPY 5 MINUTE

    SPY  5  MINUTE

  • SPY DAILY

    SPY DAILY

  • SPX WEEKLY

    SPX WEEKLY

  • INDU WEEKLY

    INDU WEEKLY

  • RUT WEEKLY

    RUT WEEKLY

  • NDX WEEKLY

    NDX WEEKLY

  • XLE WEEKLY

    XLE WEEKLY

  • XLF WEEKLY

    XLF WEEKLY

  • XLI WEEKLY

    XLI WEEKLY

  • XLP WEEKLY

    XLP WEEKLY

  • XLY WEEKLY

    XLY WEEKLY

  • XRT WEEKLY

    XRT WEEKLY

  • XLV WEEKLY

    XLV WEEKLY

  • IBB WEEKLY

    IBB WEEKLY

  • TLT WEEKLY

    TLT WEEKLY

  • UUP WEEKLY

    UUP WEEKLY

  • FXE WEEKLY

    FXE WEEKLY

  • GLD WEEKLY

    GLD WEEKLY

  • GDX WEEKLY

    GDX WEEKLY

  • SLV WEEKLY

    SLV WEEKLY

  • DBB WEEKLY

    DBB WEEKLY

  • USO WEEKLY

    USO WEEKLY

  • DBA WEEKLY

    DBA WEEKLY

  • EFA WEEKLY

    EFA WEEKLY

  • VGK WEEKLY

    VGK WEEKLY

  • EEM WEEKLY

    EEM WEEKLY

  • EWG WEEKLY

    EWG WEEKLY

  • EWU WEEKLY

    EWU WEEKLY

  • EWJ WEEKLY

    EWJ WEEKLY

  • EWA WEEKLY

    EWA WEEKLY

  • EWZ WEEKLY

    EWZ WEEKLY

  • RSX WEEKLY

    RSX WEEKLY

  • EPI WEEKLY

    EPI WEEKLY

  • FXI WEEKLY

    FXI WEEKLY

  • NYMO DAILY

    NYMO  DAILY

     


    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 DAILY

    NYSI DAILY

    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 WEEKLY

    VIX WEEKLY

    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.

 

 

 

Closing Summary

It’s fascinating given the negative news backdrop that the Fed Chair and after the release of their decision can show up for a new conference and say nothing of any value. Markets rallied on that lack of substance but nothing is what bulls wanted to hear evidently. In so doing they hope to launch the Santa Rally bulls have come to expect as a given.

Thursday the Jobless Claims, PMI Services Index Flash, Philly Fed Survey and Leading Indicators will be featured.

Let’s see what happens.

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Headshot David Fry xsmall

Dave Fry is founder and publisher of ETF Digest and has been covering U.S. and global ETFs since 2001.

He is the author of "Create Your own ETF Hedge Fund: A Do-It-Yourself Strategy for Private Wealth Management" published by Wiley Finance and "The Best ETFs: U.S. Equities, A Companion Guide to Building Your ETF Portfolio"



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Disclaimer: The charts and comments are only the author's view of market activity and aren't recommendations to buy or sell only any security. Market sectors and related ETF's 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 annotation's 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

 

ETF Digest

Market Summary
NYSE Composite Index S&P 500 Index Nasdaq Composite Index Russell 2000 Small Cap Index NYSE Composite Index S&P 500 Index Nasdaq Composite Index Russell 2000 Small Cap Index 10 Year Treasury Note Yield Gold Bugs Index Morgan Stanley High Tech 35 Index Market Chart
Commodity Quote Change Change % NY
Gold1,189.70-6.30-0.53 %16:54
WTI Crude Futr55.90-0.03-0.05 %16:20
Index Quotes Change Change % Local
CRB239.891.140.48 % 16:27
US Dollar89.23-0.04-0.04 %16:43
Index Quotes Change Change % Local
VIX19.44-4.13-17.52 %16:14
MSCI Value Daily MTD YTD
Brazil1662.409-2.37 %-19.59 %-25.05 %
Russia341.999-12.20 %-35.77 %-56.54 %
India478.024-2.66 %-9.46 %17.36 %
China62.711-1.19 %-3.95 %-0.62 %