MARKET COMMENT
May 22, 2007
SPIDERMAN SPOTTED IN CHINA!!!!
Does the image above mean anything?
Nope, not a damn thing!
I just thought it was cool.
No wait, the US
and China
are holding trade talks and maybe something good will come of it.
Does that connect?
Nope.
How
about high risk diplomacy?
Or, high risk Chinese stocks and ETFs?
Well…let’s just say I liked the image and
leave it at that.
Meanwhile Small-Caps and Techs again had a better day than
the DJIA.
Is this a trend?
Nope.
Let’s give it more than two days.
Alright, that’s enough about tech and our stuff.
Elsewhere we look to the usual suspects to
sense the mood and get a feel for the future.
Around the globe the big news is what will come of the
Chinese/US trade talks?
That’s enough chatter for today with only two days down with
three to go on the week.
Better make
that two and a half days left given what should be a quiet pre-holiday
Friday.
I think the trade talks end
tomorrow and both sides want trade peace.
The Chinese sense a growing level of protectionism in US politics and
should extend an olive branch to quell this mood.
You can tell we’re focused on Small-Caps and tech closely
right now.
If the market should continue
higher these two sectors should follow along.
If they don’t it just means we’re in a “deal market” with future
earnings taking a back seat.
That would
mean when the music stops, the party’s over.
Have a pleasant evening.
Disclaimer:
Among
other issues, the ETF Digest maintains long or short positions in:
IWM, QQQQ, IGM, ROM, FDN, PSJ, GLD, DBE, DBC,
RCD, KBE, FXI, EWH, EFA, EEM, ILF and INP.