MARKET COMMENT June 9, 2008 Beneath the bullish headlines market internals weren’t very pretty.
Posted on Monday, June 9th, 2008 | In Current Market News, Exchange Traded Funds, Stocks to Watch
Beneath the bullish headlines market internals weren’t very pretty. The only impressive thing today is markets gapped higher rather than lower at the opening. Given the viciousness of Friday’s sell-off some follow-thru selling would have been expected. Oil prices fell back 3% and home sales data were above expectations. It would be absurd to characterize this data as the start of a trend. Nevertheless, taken together it was enough to give bulls some confidence.
Again, while volume was higher than recent averages, breadth was very poor indicating continued selling.
No one’s really providing the complete data [correctly at any rate] for volume and breadth. Let’s try the WSJ today.
Many investors try, especially now, to find some comparable historical period to compare today’s action. If we’re in a true recession then we might look at the 1974 period which is when I started in the business. If it resembles today’s market in any way it might be October 1973 bear market rally.
Every market has its own unique signature and issues. But, I remember that recession well. If you think we have problems in the US today, that period was difficult with inflation building, war and the president’s resignation. The important thing is we got thru it.
That will do it for today. Clearly market internals don’t reflect strength but I was impressed by the furious comeback in the NASDAQ into the close.
Let’s see what happens next.
Have a pleasant evening.
Disclaimer: The ETF Digest maintains positions in: TLT and TBT.
Last 5 posts by David Fry
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Bear Market, Current Market News, ETF, Exchange Traded Funds, inflation, market internals, Market Rally, nasdaq, Stocks to Watch, tlt, wsj
 About David Fry (http://etfdigest.com)
Dave Fry has devoted over 35 years to the business of trading and portfolio management. His registration as an arbitrator with both the National Association of Securities Dealers (NASD) and the National Futures Association (NFA) attests to his extensive experience and spotless compliance record. Dave founded the ETF Digest in 2001 and was among the very first to see the need for a publication that provided individual investors with information and advice on ETF investing. Dave is a frequent commentator on ETFs and other issues important to individual investors, and his perspectives are featured in financial news sources such as the Wall Street Journal, MarketWatch, Investor’s Business Daily, Smart Money, Dow Jones Newswire, National Business Review, MSN Money, Yahoo! Finance, Bankrate.com, Emerging Markets Monitor, IndexUniverse.com, and ETF Investor. |
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