
Bulls came charging out of the gate Monday as the thinking over the weekend must have stimulated them to think the Fed would keep moving ahead with QE. Some pundits even suggested tapering would be a good thing since it would mean the economy is in full recovery. Frankly, it’s inappropriate to conclude anything at this point as the Fed hasn’t acted yet. There are more trial balloons floating overhead than what was witnessed on D-Day.
Economic data was helpful as the Empire State Survey climbed to 7.4 vs 0.5 expected, and prior -1.43. However, within the Survey, much of the data was weak, New Orders -6.69 vs -1.43; Shipments 11.77 vs -02; Number of Employees 0.0 vs 5.68; and, Average Workweek -11.29 vs -1.14. The Housing Market Index (See our ETF In Focus Video – ITB) came in strong at 52 vs 45 expected, and prior 42, which was the best reading in 7 years as homebuilder optimism grew.
It seems to me that bulls are a little too hasty to jump on stocks as we’ve seen consecutive trading days of 100-point up and down since last Wednesday.
Unless there’s other intervening news, it would be logical to assume Tuesday will be relatively quiet as would Wednesday morning.
We lightened up some long positions today on the early morning ramp higher. Maybe we’ll put them back on next Monday. Remember, aside from the Fed, its quad-witching Friday.
Monday afternoon stocks gave back nearly half their early gains. This drop was due to this Financial Times story that Fed tapering would begin. But buyers bid stocks back higher by those who have skin in the game.
Most of the buying focus was on tech (XLK) and bigger names in the DJIA (DIA) like CSCO for example. Bonds (TLT) were weaker. The dollar (UUP) was flat while gold (GLD) was weaker once again as investors push “risk on”.
This is a very short post and Tuesday I may not post at all as we await Wednesday’s Fed release.
Volume was lighter on the day but did see most volume on the two-way FT story. Breadth per the WSJ was positive.


You can follow our pithy comments on twitter and become a fan of ETF Digest on facebook.
...
Aside from tweeting occasionally or making some notes on my FB page, we’ll see you again on Wednesday most likely.
Let’s see what happens.
New subscribers wanting to join in with existing positions are cautioned that mature positions may have stop-loss points may result in losses to them while the ETF Digest's position may only experience a reduction in profits.
There can be substantial risk of loss in trading stocks. You should, therefore, carefully consider whether such trading is suitable for you in light of your financial condition. In deciding to trade stocks, you should be aware of the following:
You may sustain a total loss of the stock value and of all transaction costs. This statement and this web site cannot disclose all the risks and other significant aspects of the stock markets or the use of our signals.
If you engage in margin trading and the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice, in order to maintain your position. If you do not provide the required funds within the prescribed time, your position may be liquidated at a loss, and you will be liable for any resulting deficit in your account.
Under certain market conditions, you may find it difficult or impossible to liquidate a position. The placement of contingent orders by you or your trading advisor, such as a "stop loss" or "stop limit" order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execrute such orders.
No representation is being made that any stock trading account will or is likely to achieve profits or losses similar to those shown. Hypothetical stock trading does not involve financial risk, and no hypothetical stock trading record can completely account for the impact of financial risk in actual stock trading. For example, the ability to withstand losses or to stick to a particular trading program in spite of trading losses are material points which can also adversely affect actual stock trading results. There are numerous other factors related to the stock markets in general or to the implementation of any specific stock trading program which can not be fully accounted for in the preparation of hypothetical stock trading performance results, and all of these factors can adversely affect actual stock trading results.
The use of the Internet to transmit and receive information creates additional risk. The ETF Digest will attempt to post signals on the web site. However, The ETF Digest cannot be responsible for delays in transmitting the information described on this site resulting from problems with Internet connectivity, either your or our own, or by slowdowns of Internet transmittal of information.
The information provided by The ETF Digest is based on sources believed to be reliable, but it is not guaranteed to be accurate. There is no guarantee that the recommendations of The ETF Digest will be profitable or will not be subject to losses. The information provided by The ETF Digest is not a recommendation or a solicitation that any particular investor should purchase or sell any particular security in any amount, or at all. The investments discussed or recommended herein may be unsuitable for investors depending on their specific investment objectives and financial position. At any time TechInvest Inc. and its principals may maintain positions that are contrary to positions announced within the subscription service. In no event will The ETF Digest be liable to you or anyone else for any incidental, consequential, special, or indirect damage (including but not limited to lost profits or trading losses).
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
| Commodity | Quote | Change | Change % | NY |
| Gold | 1,379.90 | -5.80 | -0.42 % | 03:25 |
| WTI Crude Futr | 97.59 | -0.18 | -0.18 % | 02:54 |
| Index | Quotes | Change | Change % | Local |
| CRB | 286.26 | 0.08 | 0.03 % | 06/17 |
| US Dollar | 80.74 | -0.05 | -0.06 % | 00:46 |
| Index | Quotes | Change | Change % | Local |
| VIX | 16.80 | -0.35 | -2.04 % | 06/17 |
| MSCI | Value | Daily | MTD | YTD |
| Brazil | 2314.25 | 0.07 % | -7.96 % | -15.16 % |
| Russia | 714.95 | 1.59 % | -1.49 % | -11.46 % |
| India | 401.85 | 0.43 % | -4.64 % | -6.55 % |
| China | 55.77 | 0.92 % | -6.85 % | -11.26 % |