Friday Outlook: Commodities, Global Markets

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January has one more day to go and it will take a Herculean effort for bulls to save the month. If, as likely, bulls can’t, then the so-called January Effect (as goes January, so goes the year) means a bad year ahead.

It’s interesting that bonds broke down today along with terrible economic data. Earnings remain terrible no matter how hard bulls try to spin it. The only thing they have going for them is that bears may be exhausted and markets are oversold—the latter being a condition that can persist for a long period.

Northern Trust Co. (NTRS) is going to close their newly launched 17 ETFs due to a lack of support and assets. It was strange they issued them given the ETF business was outside their core business, but it was stranger still they didn’t support the launch during harder times.

No podcast this weekend.

Have a great weekend.

Disclaimer: The ETF Digest maintains a position in GLD.

Comments

[alivewweb:]

This morning I have on watch SKF ($142) and UYG ($3.28). It is my understanding these should mirror each others movements and they do. However if you add these two numbers together you get about $145.

The week of October 19, 2008 SKF dove under $90 while UYG held about $10 ;the sum of which was about $100. During the SKF spike to $250 UYG didn't break $3 until much later.

My question is if the prices reflect the value of an index or portfolio long and short or double long double short why the gyrations in total value? What are the actually measuring?

Jan 30 08:29 AM

[A Different...:]

David,
You're gonna need a bigger stick for dem saves man!
Dave

Jan 30 10:29 AM

[BigOlDave:]

David,

When it comes to sticks, size isn't everything.

Dave

Jan 30 02:20 PM