MARKET COMMENT
December 11, 2006
Investors were on “Fed watch” today for tomorrow’s policy
meeting news. Most expect nothing to
change in policy. Surely they wouldn’t
want to give investors a lump of coal for the holidays by raising rates. While many bulls would like to see an
interest rate cut, our reaction has been what for? As we see it interest rates are low but money
supply growth is too easy. Since the
latter issue is putting pressure on the dollar there may be more inflation-fighting
rhetoric that would be dollar supportive.
OPEC is due to meet on Thursday and they’ll be trying hard
to make us believe that they can hold a $60 floor for crude oil. Unfortunately the data released today shows
more cheating by members.
Commodity markets, apart from energy, were mostly
higher. That caused DBC despite heavy
energy weightings to be stable.
Other markets near and dear to our hearts include:
It is kind of an odds and ends look at markets, but we can’t
post them all can we? Anyway, tomorrow
we’ll be watching the Fed like others and then OPEC on Thursday. During the week we’ll get earnings reports
from trading desks brokers [dba, Global Megabanks N.A.]
Tonight I see TXN [Texas Instruments] is lowering their earnings and
revenue outlook. Will the bulls be able
to set that aside too? So far, “yes”
since it’s up in after-hours trading.
Have a pleasant evening.
Disclaimer: Among
other issues, The ETF Digest maintains positions in: FXE, IEF, DBC, GLD, SLV,
CEF, QQQQ, IFN, TRF, FXI, EWA, EWC and IEV.