MARKET COMMENT
April 16, 2007
You cannot short this market on a bet since there’s an
ongoing supportive bid.
This is
manifested by buyouts [Sallie Mae and Double Click today] and massive amounts
of liquidity.
Further, the G-7 failure
to address the weak yen over the weekend means the “the yen carry trade” is
fully operational stoking even more fuel for buying.
Greenspan was also out reeling-in his previous recession possibility
comments suggesting that global growth will cushion any decline in the US
economy.
Oh, and by the way, he said the
subprime mortgage issue was no big deal either.
Announced earnings from companies like Citigroup and Eli
Lilly beat “lowered expectations” which equals an upside earnings surprise to
bulls.
So all things deemed positive means we rally.
Keeping our eye on more markets that count and some just
ignored “for now” we’ll just keep on posting them anyway.
So let’s go overseas for more thrills than domestically.
How about a little this and that?
That’s enough of your global investment tour for one
day.
The markets are powerful and
shouldn’t be messed with on the short side.
[Tell me about it!]
An invisible hand?
Well given all the cash boiling under the surface looking for a home it’s
there.
But thing’s can change on a dime as we witnessed just
five-six weeks ago.
How quickly we
forget when we’re on a roll.
This is enough chatter today given the tragedy that took
place in Virginia.
Have a pleasant evening.
Disclaimer:
Among
other issues, the ETF Digest maintains long or short positions in: KBE, RYH,
XHB, UDN, GLD, DBP, DBE, DBC, DBB, SPY, MDY, IWM, IBB, FDN, IGV, EFA, EEM, ILF,
IEV, EWJ, FXI, EWA, EWY, EWG, EWN, ISL and TKF.