David Fry's Daily Market Outlook

by: David Fry

Let’s see. Housing data was unexpectedly strong today, and XHB sells off. Curious.

What happens to the consumer with declining real estate markets has been the chief concern of most economists, and only a sideline question for the Fed.

I was listening briefly to Neil Cavuto’s market summary today and one of his panelists spoke of how well the brokerage firms are doing, “as Americans are continuing to invest, generating record revenues for brokers.” Excuse me? This is a financial reporter who clearly knows nothing of the composition of Wall Street revenues and earnings. Good grief!

We have two more trading days before the end of the quarter. There’s a lot of champagne on ice for DJIA close at highs exceeding 2000. The NASDAQ on the other hand is still down more than 50% from its previous highs, but let’s not focus on negatives. The DJIA is mere “window dressing for the tourists” as some, including myself, are fond to say. A new high would be a headline that sells ad revenue for the financial media and may also suck-in money off the sidelines.

It’s a curiosity.

Disclaimer: The ETF Digest maintains positions in S&P 500 Index (NYSEARCA:SPY) and iShares Lehman 7-10 Yr Treasury Bond ETF (NYSEARCA:IEF).

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