Tuesday Outlook: Commodities, Global Markets

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There’s still a lot of important news yet to come this week from the ISM, store sales and employment data on Friday. But the mood since Christmas has been to brush-off bad news as old news and look forward to a brighter future. That would be nice if it were so.

The charts are starting to say “go man go” but the McClellan Oscillator says “watch your step pal.”

Let’s see what happens.

Have a pleasant evening and day.

Disclaimer: Among other issues the ETF Digest maintains positions in: DIA, XLE, GLD, DBA, GLD, EWJ, EWY and FXI.

Comments

[investor88:]

It seems David is more positive, taking some small positions. Why not, there are trading opportunities but maybe not much more than that?

Jan 06 07:20 AM

[cma:]

David bought XLU and DIA today with the markets up 2.46% from the lows. Trend-following has somehting to say for it as a strategy, but when you miss 25% of a move, that undercuts the entire philosophy: 5-10% late, yes, but not 25%, since you may miss almost the entire move that way.

Jan 06 01:30 PM

[User 273020:]

Would you please explain how to read/comprehend the MCD charts as I am a newcomer to chart reading?

Jan 06 04:24 PM

[Katzlou:]

As a subscriber to Dave's newsletter, I need to let you know that signals to buy these were issued several days ago-- not today. It's hard to argue and second-guess when all of his portfolios posted positive performance results for 2008 --especially his DSP Multi-Strategy which was up 9%.



On Jan 06 01:30 PM cma cma wrote:

> David bought XLU and DIA today with the markets up 2.46% from the
> lows. Trend-following has somehting to say for it as a strategy,
> but when you miss 25% of a move, that undercuts the entire philosophy:
> 5-10% late, yes, but not 25%, since you may miss almost the entire
> move that way.

Jan 06 04:24 PM

[Alex Biggs:]

cma2...

If Dave bought DIA at the absolute lows of $75, that would make it 18% and not 25% as you stated.

The general low as opposed to the 1 day low was around $81 or 9% from his purchase per your math.

Back to the drawing board for you.

Jan 06 05:01 PM