MARKET COMMENT
April 19, 2007
I guess the overheating economy in China means the
government will tighten things up so much that they won’t be buying gold or oil
anymore.
That comes straight from the “weak
hands” department.
Sometimes I wonder what goes thru the minds of some
investors.
The US
stock market looked like it was in for a repeat of February’s China-linked
decline but the bull’s would have none of it--fool me once but not the second
time man!
Meanwhile Chinese markets were rattled by above 11% growth
rate.
So they’ll slow things down maybe
to 10%.
As Mae West
was fond of saying: “Too much of a good thing is wonderful.”
The only thing holding techs up are Semi’s which has been
dead money for seven months.
The rest of
the sector is just moving sideways.
That’s a relatively brief but broad look at a variety of
markets worldwide that we’re pushing interested in.
I’m ending these daily commentaries this week feeling a
little tired.
So I apologize for the
brevity.
The “weak hands” investors were featured players today along
with determined bulls.
One can only
wonder how weak the underlying fundamentals are for crude oil if it can fall for
such flimsy reasons like the Chinese will buy less energy--as if!
Gold too with the dollar still weak had no
fundamental reason to decline.
The other
flimsy reason noted was that the euro was unsustainably high.
That may be since I’m no euro fan, but it
rose today nonetheless making the reasoning offered for its decline a stretch.
Have a great weekend.
Disclaimer:
Among
other issues, the ETF Digest maintains long or short positions in:
SPY, FXI, GLD, UDN, FXE, FXB, RYH, RHS, EEM,
EWA, EWY, EWN, IEV, ILF and ISL.