Tuesday Outlook: Commodities, Global Markets

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So, why did we exit markets today? As I told subscribers when the system says to do it, that’s what we do. No questions asked. It has nothing to do with “the sell in May and go away” maxim even though that might work out ultimately.

The low volume tells you this is a professionals' market. Again, the Street has deals to get done and with the help of basically free government money on their trading desks, they can push markets to where they need them to price and unload this stuff. You can’t get in their way or finesse this kind of power. Retail investors have no interest in markets still. Many are still shell-shocked by what they see in their financial statements. It’s understandable.

Further, with yields this low on risk-free money there’s tremendous anxiety to get better returns for investors and performance fees among hedge funds. It’s that simple.

The good news for the Fry Family is that surgery seemed a success and Francie is recuperating here at the house we’ve rented in Baltimore. We’re in a really nice spot here, and even though we’re within the city limits, we noted a fox with a rabbit in its jaws ambling by the backyard yesterday. How strange is that?

We really appreciate all your kind thoughts and emails. It’s very touching and meaningful to us.

Disclaimer: Among other issues the ETF Digest maintains positions in: aside from not much? Well, there’s IEF, TLT, TBT, DBC and UDN.

The charts and comments are only the author’s view of market activity and aren’t recommendations to buy or sell any security. Market sectors and related ETFs are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period. Chart annotations aren’t predictive of any future market action rather they only demonstrate the author’s opinion as to a range of possibilities going forward. More detailed information, including actionable alerts, are available to subscribers at www.etfdigest.com.

Comments

[Alan von Al...:]

Like many, always mindful of your family and send best wishes.

May 19 03:58 AM

[fatcat:]

Sounds very positive for Mrs.Fry...know you guys are feeling some relief.

Always be cautious of foxes seen during daylight hours...it sometimes indicates sickness like rabies....or maybe just a female hunting for her young.

Good luck..

May 19 04:43 AM

[SA Editor J...:]

Good news! Wishing you a continued and full recovery

May 19 07:07 AM

[Barryyes:]

Any explanation for the smack-down in Gold and Silver yesterday?

May 19 07:37 AM

[Daniel Herkes:]

Thanks you for the insights. The latest news about the "local" banks is fairly unsettling, and kind of makes me wonder how many more surprises the financial system has in store for us. You are right about the markets being moved by large investors. They can sway the Fed to shore up the investments long enough to short them, in my opinion.

Foxes are poorly understood creatures. People repeat all sorts of stories about them, and those stories become legend. I see many of them where I live, often they hunt at sunrise and sunset - primarily small rodents. Since they are canines, they can and do develop a "relationship" with humans. There are many abandoned subdivisions here in N. Illinois. The stored top soil dirt hills are ideal for foxes, coyotes, and other den builders. So their populations are increasing. That's good for a guy like me that enjoys watching animals.
But all wild canine animals (in this climate) carry rabies, it's best not to go too close. Foxes are also great parents, as are most canines.

May 19 08:14 AM

[Earthizen:]

Glad to hear the surgery went well. Good luck with the recovery.

From my little desk, I can appreciate your comments on the big boys shoveling free government money to get deals done. That's the way life is.

May 19 08:30 AM

[doubleguns:]

Hoping and praying for a speedy recovery. Glad everything is going well.

On a selfish note hope the computer survive the shipment.

As always appreciate what you do for us here at SA with your charts and quips of wit/wisdom.

Thank-you Dave!!!

May 19 08:44 AM

[Tech_analyst:]

Good news! Wishing you a continued and full recovery

May 19 08:54 AM

[Seeking Advice:]

Dave,
Happy for you that Francie's surgery seems a success. I'm sure that brings relief. Have seen a fox eat a squirrel in the morning here in the suburbs of Boston.

I'm sitting with less than 50% equities, though as the market powers upward and not making any moves, the % keeps rising. I fear getting swept up in the euphoria and finally adding to equity positions just as the market turns downward again. Timing tends to work that way. As you note, this appears to be a market for professionals, which I am not.

May 19 09:21 AM

[JoePass:]

Dave....good to hear the good news about Francie....I certainly appreciate you continuing to post your charts and comments during such a stressful time.....

Thank you.....

May 19 09:23 AM

[sentinelbrit:]

I enjoy reading your analysis. I am not as cynical as you are about da boyz running the market. If that were true then when the market collapses as so many people believe it will, is that da boyz engineering the collapse or investors suddenly seeing the light and running for cover? If the market continues to rise, I can see the bears throwing in the towel - that will signal the top.

May 19 09:41 AM

[4Annie:]

Dave,
So glad to hear Francie's surgery went well, hoping for full recovery. I've never seen a fox in my suburb (Cols. OH) but we've chased posums, skunks, & racoons out of the garage.

May 19 09:45 AM

[fotokemist:]

I add my thanks for you sharing your analyses and prayers for your family.

May 19 10:07 AM

[Larrysyr:]

I hope it's not Da Boyz who are the fox and us little guys who are the rabbit.

Best wishes to you and your family.

May 19 10:14 AM

[asaf123:]

Dave, best wishes and prayers to you and the family. Thanks for taking the time to share your wisdom with us.

May 19 10:30 AM

[The Aft Deck:]

Wishing your family the best, great article once again.

May 19 11:46 AM

[Jake2:]

Beauty is in the eye of the beholder . . . or not! Some of these charts look like double bottoms, which is bullish some say. And GLD has been described by others as a reverse head and shoulders pattern, also bullish, unless you see the figure as a man standing on his head, not so bullish.

May 19 12:31 PM

[Greyowl:]

Before I go any further, good news with Francie! Best luck on recovery. Try to focus on the upside - going through disasters like this make us value life more.

As for the market... I am not sure I understand. So, you conclude that the market is driven up by Da Boyz, but you refuse to go along. Why not? IMHO (oh, sorry, somebody told this before me :-( ), the market is right. All we need to do is to understand the trend and follow it. We cannot control it anyway.

When it, let's say, goes down, why not to get off and say "Thanks for the ride!". Isn't what we have stops for?

I, for one, enoy the ride immensely all the way from March and invite everybody to join. Even if it is a couple days (a week, who knows?) more...

May 19 12:50 PM

[AndrewBaker:]

Keep your personal recovery going, whilst watching the other one relapse!

Yes, playing with other people's money is easy, but it doesn't make a bull market. "Yes it is, no it isn't" has been the play here for a while. Now more people are realising that it isn't, so now's the time to either take profit, conserve cash, or work out your best shorts to air for the summer.

May 19 02:46 PM

[popey:]

Yeah that was a shocker. Silver was punished when industrials rallied. Gotta be cartel behavior, government intervention, rigging, "the boys", corruption, etc... I thinks the longs will force delivery though... so the game will be over soon... check out the May expiry.

On May 19 07:37 AM Barryyes wrote:

> Any explanation for the smack-down in Gold and Silver yesterday?

May 19 06:14 PM