MARKET COMMENT
May 14, 2007
Looks can be deceiving.
While the DJIA posted a small gain today owing to the Chrysler deal the
rest of the market put on a pretty pathetic show.
Volume was so-so and the following
advance/decline data was more revealing as to the true nature of the day’s
action.
Pundits claim investors are just waiting for the CPI data
tomorrow before committing one way or another.
Frankly I don’t know what might surprise them since even a negative
headline CPI number has never bothered bulls before.
It’s the “core rate” silly!
If you’re a bull you might just set today aside as a typical
bull market-type Monday when selling can be more dominant.
There’s still a long way to go until Friday
with plenty of news in between.
More disappointing however is the poor action from
small-caps and tech.
Investing overseas has been more fun and rewarding, but not
today.
As is plain to see US markets were weak overall with
only the DJIA higher abetted by Chrysler.
The rest of the field was tense ahead of the CPI and therefore sold-off
some.
The CPI means little to me since
the method of calculation is laughable.
But what I think matters little since others are in charge of the
tape.
Have a pleasant evening.
Disclaimer:
Among
other issues, the ETF Digest maintains long or short positions in:
SPY, IWM, QQQQ, IGM, FDN, PSI, IGV, UDN, GLD,
DBE, DBC, RCD, EFA, EEM, EWY, ILF, FXI, INP, EWA and EWC.