MARKET COMMENT
January 23, 2007
Switch from energy to tech?
Oh, you must have misunderstood me; I meant stay away from tech and buy
energy.
Well, so it goes this merry
month of January.
There are many market
pundits hoping you’re on LSD or some such thing hoping you’ll forget the
original message.
Earnings from tech companies are rolling in after the
close.
AMD looks weak by taking heavy charges
and looks light on their outlook.
YHOO
comes in with heavy charges related to options expenses and revenue also seems
a little light.
[There are rumors
circulating that YHOO may be taken private. Maybe this is why the stock is up
almost 6% in after hours trading.]
SUNW
is the big winner posting a profit of three cents versus expectations of a
penny.
The stock is up over 8% after
hours.
The QQQQ is up a nickel.
When we think of bonds an associated market is mortgages
which primarily follow the 10-year Treasury bond.
Now this “sort of” relates to the oddity of the
homebuilder’s as featured by XHB [Homebuilder’s ETF].
Today D.R. Horton reported horrible earnings
[that were only “slightly” better than crummy expectations] but that combined
with an upgrade from GS put the stock up almost 5%.
If you read the report here
from MarketWatch you can claw through it and not find
much to like period.
Then in the odds and end department there are a couple of
sectors where there remains some opportunity.
Where else were money-making sectors today?
Other than in commodities, most overseas
related ETFs are still performing well.
Tomorrow and thru the rest of the week may see everything
reverse again.
You never know, energy
could get soft and tech’s hot again.
That’s the way things go especially in a tumultuous market that January
can often bring.
Have a pleasant evening.
Disclaimer:
Among
other issues, the ETF Digest maintains positions in: QQQQ, GLD, DBP, DBA, PPA,
PHO, ILF, EEM, EFA, EWA, FXI, INP and EWM.