David Fry's Daily Market Outlook

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 |  Includes: FDN, GLD, IYR, SPY, TLT, USO, XHB
by: David Fry

It's another one of those market days when geo-political risks don't scare anyone. Kim's weird and, as such, is scary. Is Kim just about the money to keep his Stalinist regime propped-up? Will he sell weaponry to rogue states? Investors didn't seem to care much today, as they set the comic strip character aside and pushed markets slightly higher in light trading.

U.S. bond markets were closed today but investors still traded iShares Lehman 20+ Year Treasury Bond ETF (NYSEARCA:TLT) higher as Fed Governor Yellen "soothed" investors by reinforcing the correctness of the Fed's recent interest rate "pause".

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From the St. Elsewhere department, former Chairman Greenspan was chirping last night that the bubble troubles in real estate markets, a product of his policies, were all behind us -- “the worst is over,” says he.

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In one of Wall Street’s worst kept secrets, Google Inc. (NASDAQ:GOOG) buys YouTube for $1.65B. I believe Mark Cuban recently said: “Only a moron would buy YouTube!” What’s interesting me is First Trust DJ Internet Index ETF (NYSEARCA:FDN). I like its construction since it’s the only internet-based ETF featuring GOOG; however from a liquidity point of view, it hardly trades. This shouldn’t surprise too much since as a new entrant and primarily a retail item it reflects the lack of individual participation in this market.

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Bold prediction headline of the day: From MarketWatch: “SG Cowen predicts INDU could reach 12,000!” (Gee, that’s a little over 1%).

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Okay, bond markets will reopen tomorrow and North Korea will try again for some attention. (There is some debate as to whether their nuclear test was even successful.)

The bull’s are still in control of equity market action.

Disclaimer: The ETF Digest maintains positions in S&P 500 Index (NYSEARCA:SPY), iShares Dow Jones US Real Estate ETF (NYSEARCA:IYR), streetTRACKS Gold Trust ETF (NYSEARCA:GLD) and iShares Lehman 20+ Year Treasury Bond ETF (TLT).