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"Bernanke to the rescue" along with a short-squeeze sums up today's stock market rally. You'll get no argument here. And, what did he say to cause this buying stampede? He said he was worried about the health of the housing market; that the poor conditions in the sector could cause a drag on economic growth by 1-1.5%; he didn't know how protracted the decline would be; and, inflation fears are declining. Translation? The Fed is going to cut interest rates and continue to print enough money to keep things chugging along. End of story.

Yesterday we observed how poor market internals and breadth were. Not today!

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It's been reported in various blogs that the administration has stopped filling the strategic reserve and postponed deliveries until 2007. This, if true, has further pressured energy prices.

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Other markets, or odds and ends, include the following:

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It will be interesting to see tomorrow how much of an increase, if any, AMG Data reports in money-flow from individuals to the markets.

For now we bow to the power of bulls and the reality of the tape. Mr. Market delivers the message and we must listen. There is a flip-side to the bullish case of lower interest rates (deflation and recession) that is drowned-out by their roar.

It's always an interesting phenomenon when reporters start calling and asking about certain sectors being in trouble. I've taken some calls regarding commodities and energy in particular. Just when the financial media was pounding the table to have you buy energy, now they're thinking you have too much of it.

Bernanke hinted at what future Fed policy might look like -- rate cuts. I also wonder if after the election the Fed doesn't start to reign in excess money supply growth (now officially hidden from public view) even after it starts cutting interest rates early next year. And, why not? One duplicitous policy father's another. This is an intriguing notion.

Disclaimer: The ETF Digest maintains positions in S&P 500 Index (NYSEARCA:SPY), PowerShares Dynamic OTC Portfolio ETF (PWO), iShares Lehman 20+ Year Treasury Bond ETF (NYSEARCA:TLT), Industrial SPDR ETF (NYSEARCA:XLI), Software HOLDRS Trust ETF (NYSE:SWH), iShares NASDAQ Biotechnology Index ETF (NASDAQ:IBB), Market Vectors Gold Miners ETF (NYSEARCA:GDX), Industrial SPDR ETF (XLI), iShares MSCI Mexico Index ETF (NYSEARCA:EWW), and iShares MSCI Spain Index ETF (NYSEARCA:EWP).

Source: David Fry's Daily Market Outlook