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David Frys Market Outlook

Okay, DOW 12K.

That, according to all the talking heads, will draw/suck retail investors into the markets.

Cynically, retail is always wrong, and the pros will sell them their accumulated shares in pump-and-dump fashion:

David Frys Market Outlook

David Frys Market Outlook

David Frys Market Outlook

David Frys Market Outlook

David Frys Market Outlook

David Frys Market Outlook

David Frys Market Outlook

David Frys Market Outlook

David Frys Market Outlook

David Frys Market Outlook

David Frys Market Outlook

Can the rally in big caps extend to other neglected sectors? Let's examine an eclectic group of ETFs.

David Frys Market Outlook

David Frys Market Outlook

David Frys Market Outlook

David Frys Market Outlook

Yes, the $INDU exceeded a close of 12K for the first time. The emphasis from the financial media will be to promote this positive move to Main Street, where it's expected Joe Sixpack will start throwing money at the markets. Don't bet on it, since many would be investors are doing all they can to pay those mortgages. In case you forgot, the U.S. has a negative savings rate. And, this just in from AMG Data Services:

David Frys Market Outlook

Analyzing the above data suggests Joe Sixpack isn't beating a path to mutual funds -- yet. Sure there's flow to ETFs, but most of that might just be institutions using the ETFs to get invested fast only to sell them later to buy individual shares. But, nevertheless, let's give the market its due, after all we're involved.

What's really interesting is that among the rubble or tailings from the deluge of new ETF issues there are some gems. First Trust DJ Internet Index ETF (NYSEARCA:FDN) may be one of those lost in the rubble.

Disclaimer: The ETF Digest maintains positions in: First Trust DJ Internet Index ETF (FDN), Internet HOLDRS (NYSE:HHH), streetTRACKS Gold Trust ETF (NYSEARCA:GLD), Euro Currency Trust ETF (NYSEARCA:FXE), iShares Lehman 7-10 Yr Treasury Bond ETF (NYSEARCA:IEF), iShares Dow Jones U.S. Real Estate ETF (NYSEARCA:IYR), Utilities SPDR ETF (NYSEARCA:XLU), PowerShares Zacks Small Cap (PZJ), PowerShares Zacks Micro Cap (NYSEARCA:PZI), PowerShares Water Resources ETF (NYSEARCA:PHO) and iShares NASDAQ Biotechnology Index ETF (NASDAQ:IBB).

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Source: David Fry's Daily Market Outlook