MARKET COMMENT
October 18, 2006
iPod Nation
Our economy has more to it than just iPod’s doesn’t it? Well, maybe not based on investor fixation
with these gizmos. You own one of course
or your children do. Anyway, investors
are thrilled with AAPL’s earnings report after the close pumping the stock
higher by nearly 6%.
At the same time AMD (Advanced Micro Devices) is getting
slaughtered in the after hours after a disappointing earnings report driving
the shares nearly 13% lower. This should
negatively affect SMH (Semiconductor Holders) tomorrow since chip manufacturing
companies also disappointed today.
The market overall seems sloppy and the tape action looks
tired. No doubt bulls are buying any
dips and there doesn’t seem to be many seller’s around. Earnings news still dominates action but
could be undone by Leading Indicators tomorrow along with Philly Fed
survey.
In the meantime, let’s look at some indexes that seem the
most important:
Overseas markets are just paralleling US markets as almost
all equity markets, awash in liquidity, are highly correlated currently.
Well, all these charts give you a pretty clear sense of
investor sentiment and market conditions.
The bull’s still have the ball and with complacency this high expect dip
buying to continue. But, as we saw just
yesterday any unexpected news can stampede the herd.
Disclaimer: The ETF
Digest maintains positions in: IEF, IVE, DVY, XLU, IYR, GLD, GDX, FXE, IEV and
EEM.