Words fail me in describing this action so I must turn to something more lyrical from the Eagles. The bottom line is markets are much overbought from many perspectives as quad-witching looms. Some would argue correctly that overbought conditions are a sign of strength rather than an opportunity to exit. We have taken some profits and may be forced to reenter at some point, a la “you can never leave.”
Oracle (ORCL) disappointed after the close and how markets react to this will prove interesting. The spin might well be to shrug it off and focus on rosier scenarios like more “better than expected” news on Jobless Claims, Housing Starts and the Philly Fed Survey being released tomorrow.
I just remain your reporter from my humble perch. Let’s see what happens and you can follow us on twitter here.
Disclaimer: Among other issues the ETF Digest maintains positions in: VTI, RSP, XLB, XLI, IYR, XLE, UDN, GLD, DBC, EFA, EEM, EWJ, VNM, TUR, EWW, EWZ and RSX.
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.