MARKET COMMENT
February 6, 2007
It seemed like not too much happened by the end of trading today
particularly in US markets.
So if you’re
going to write any commentary you have to look more closely to find something worthwhile.
What’s not happening?
Tech.
Why bother pointing that out?
Because it’s an important sector.
Okay, GS jettisons its commodity and stock sector indexes to
S&P.
You can expect the new product
engineers at S&P to issue some more tech subsector
ETFs linked to GS Tech Indexes like Hardware,
Internet and Services for example.
Maybe
that will stir up the troops.
Well, no probably
not.
Let’s stop and look where the real positive action continues
to be and that’s overseas, especially in Emerging Markets.
That’s enough for what appeared a day of little progress in
the US.
However, the action in IWM and MDY may prove
a significant “tell” that there’s a lot of strength and momentum under the
market.
The tech sector just isn’t doing
anything.
Isn’t that a “tell” of some
negativity?
Sure, but it reminds me of
1984 [yeah, I’m old] when tech coming off a great year, fell while bigger names
and other sectors did well.
The best action remains overseas “clearly”.
But it’s also fraught with high risks as you
can see by some of the 30% quick corrections that occurred only last year.
So don’t get too comfy and buy that Porsche
just yet.
Tomorrow we get energy inventories and that may prove market
moving given the cold weather in northern sections of the US.
Have a warm and pleasant evening!
Disclaimer:
Among
other issues, the ETF Digest maintains positions in: GLD, IGM, RYT, IGN, IBB, FDN, IWM, UWM, MDY, MVV, PZJ, PZI, PPA, PHO, EEM DBB, EFA, EWA, EWW, EWA, EWJ, NIKKEI 225, INP and EWM.