MARKET COMMENT
April 30, 2007
RAINY DAYS AND MONDAYS
How many times have I used this image?
Every day like today.
After a sharp run higher it may be time to
start taking some money off the table, at least that’s what some must be
thinking. And conditions may stay a bit difficult with economic data peppering
markets all week concluding with important employment data on Friday.
Today’s data wasn’t particularly any worse
than we’ve seen previously.
Further
earnings news will be trailing off.
With
markets overbought, it’s not surprising to see selling on little news.
While today was the last day in the month of April, for many
funds it’s the start of a new month.
That means they can take it easy out of the gate as performance
pressures for portfolio managers ease.
No doubt we’ll hear the “sell in May and go away” maxim now
in earnest.
For the past few years this
has been the correct posture but it definitely depended “when” in May you
acted.
No matter, today we had another attack from the weak hands
people.
The dollar was still relatively
weak but gold was off a little with GLD dropping even more than a little.
The latter being a sign of more weak
hands.
The hottest overseas markets also succumbed to some
profit-taking today.
How are these two for a tale of two different closed-end
funds?
I really don’t have much more to add today as I’m under the
weather like our friends in the image above.
The Van Eck Russia ETF was priced today and we’re still
working on getting the right historical data for it.
Have a pleasant evening.
Disclaimer:
Among
other issues, the ETF Digest maintains long or short positions in:
UDN, GLD, SPY, MDY, QQQQ, ILF, EFA, EWA, FXI,
INP, TKF and ISL.