MARKET COMMENT
May 10, 2007
Chucky is on the ropes…again.
With stocks much overbought it wasn’t going
to take much to bring out sellers.
If
Chucky [the consumer you can’t kill] is done then many will start to
contemplate the prospects for the global economy so dependent on US consumer
spending.
The funny thing is that just as some bearish investors are
throwing in the towel markets start selling-off.
Tomorrow will be filled with more economic
news before trading begins with the PPI and other economic numbers headlining
before the opening.
If the reports are
poor you can expect more selling on Friday and into Monday.
Then what?
Sell in May and go away?
Just as many bears had discovered and global economic boom
and tossed in the towel markets correct.
It could continue to do so with a bad PPI tomorrow associated with other
data.
Should we be weak tomorrow, Monday
could be even more difficult.
I’m jumping off to do some chart work.
Have a great weekend.
Disclaimer:
Among
other issues, the ETF Digest maintains long or short positions in:
SPY, QQQQ, FDN, PSI, PBE, DBE, $USD, GLD,
EFA, EEM, ILF, EWA, FXI and INP.