MARKET COMMENT
January 9, 2007
While some things are [ahem] impressive from the outside, a look
under the hood can provide a better perspective. Today, AAPL announced a new product [iPhone] and the tech heavyweight was up over 8% which
pulled the major tech index out of the red.
But under the hood, market internals were not that impressive.
Overall most markets are getting off to a sloppy and fitful
2007 as investors try to get their bearings.
This may take the rest of the month as earnings start to rollout. If earnings continue to impress so will stock
prices. The sentiment switch from commodities
to tech may be the new trend, but frankly it’s too early to tell. With AAPL dominating action today and being
such a heavyweight it fostered confidence in the tech sector.
In the meantime, Dr. Copper is back down and bouncing off
the interim support levels [$2.50] we previously outlined.
Earnings will start flowing in earnest this week. The bullish attitude still dominates since
markets when in this mode set aside/isolate bad numbers [MOT, DELL etc] and
focus on something good like AAPL. That’s
typical bull market action. It’s just
too soon to argue as some did today that tech is cheap. GOOG and now AAPL are the only tech companies
that are innovating as best we can tell.
“Old tech” may seem cheap but what are they really doing for
growth? Their only hope is that “capex” spending drives share prices higher.
Beware Emerging Markets—they’re not a one way ride
higher. Just remember as recently as July
investors were in tears.
I’m still recuperating from my fall and injuries [ribs/back/elbow]
so today is a briefer summary again. But,
at least I got this far, eh?
Have a pleasant evening.
Disclaimer: Among
other issues, The ETF Digest maintains positions in: QQQQ, FDN, DCR, EWA, GLD,
ILF and EEM.