Markets Quietly Higher

David Fry's picture


ADP Data Employment Data was lower (198K vs 215K prior) while Factory Orders were weaker (-2% vs 1.8% prior). The Fed’s Beige Book showed little change from previous reports—economy growing modestly and inflation is tame. 

Markets reacted without much conviction either way and for the most part took a break even as POMO was fully operational. One sector leading markets higher were financials, which we profiled in today in a short video highlighting SDPR Financial ETF (XLF). As premium subscribers know, we’ve been pretty active in XLF and are looking to add to our existing positions.

With so much action within markets lately it’s good that colleague David Gillie wrote his Midweek Peek featuring profiles of a few dozen ETFs that are making new highs or lows.

The ETF Digest launched our 7th portfolio on Monday March 4th -- The All-Weather Portfolio – using our own selection of ETFs. I believe it can be a good core portfolio option for those not wanting frequent trading activity and who seek a uncorrelated portfolio structure of constituents. Since Monday’s launch the portfolio is up .45%.

Other market sectors with some action Wednesday included a stronger dollar (UUP) against a weaker euro (EUO). Even with the dollar higher, gold (GLD) managed a small rise of $8.00 supposedly due to the modest readings from the Fed’s Beige Book. Nevertheless, copper (JJC) was weaker while oil (USO) prices also fell. With energy lower, the premier commodity tracking ETF (DBC) was also lower again.

The DJIA (DIA) continued to set another high aided by gains in the highest priced stocks (IBM, MCD, MMM, CVX and BA). The next target for bulls is the S&P 500 Index, which is less than 20 points away from new highs. At the same time, bonds (TLT) were once again weak.

Volume was quite light and perhaps investors are holding back for Friday’s employment data. Breadth per the WSJ was modestly, like the Beige Book, positive.  








Continue to U.S. Sector, Stocks & Bond ETFs











Continue to Currency & Commodity Market ETFs







Continue to Overseas Sectors & ETFs








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.



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.



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.


Continue to Concluding Remarks



Jobless Claims, International Trade and Productivity and Costs are on tap for Thursday. We still have a handful of large retailers set to report as earnings season ends. 

With the S&P 500 record near it’s likely to be acquired which is par for the course.


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David Fry's picture

markets manipulated:

Sure, for overseas investors, a rising dollar should enhance equity returns for them.

disabledvet's picture

The only two markets that are not hitting highs with regularity are nat gas and the dollar. I've already bought into one asset class at nose bleed levels. Is their an individual equity or debt you think I should dive into? I've posited GE as that one is WELL of its highs. Surely we can do a little dumpster diving here...

David Fry's picture

See what happens with fracking and Keystone. If approved you might look at natural gas companies but not natural gas itself. FCG in that regard might be the right play.

Number 156's picture

Can anyone envision a scenario that doesn't end in tears?

 Bernanke is like a Pilot of a helicopter who decides to climb when his engine begins showing signs of failure. Instead of a rough landing, he's going to create a flaming impact crater.

Awakened Sheeple's picture

Thanks, D.F. I'm starting to look forward to your daily market reports as much as Tyler's.

mktsrmanipulated's picture

just posing a with qeternity and the crushing of the $ commodities are inflating in price rt??? twice as much$ to buy the seems to me that it translated to the stock market as well...for centuries the common philosophy was high oil bad for stocks....high stocks bad for bonds...but then a very interesting thing happened one day...someone realized that if the dollar weakens shouldnt all us dollar denominated assets go up in value?????? 


so now all fundamental data is ignored....all govt statistical measures are maniuplated and the masses are fed a stream of bullshit from cnbc and jim "cocksucker" cramer so they think they understand the markets...


US Financial Markets are the biggest ponzi scheme in the world and uncle ben makes madoff look like a 3 card montey dealer

Buck Johnson's picture

The world is figuring that out big time in regard to the US economy and even the western nations.  Soon very soon it will implode and you will see the US go nuts.

ebworthen's picture

Nice charts, thanks.

What is most striking is the ever decreasing volume 2009 on as the levels rise.