Unless you care about GM, and we don't, the markets that impressed us today were energy, currencies and precious metals.
Phony rumors about a possible platinum ETF issue proved costly to those sucked into this mess. There will be some ugly falling action stories as a $130 two-way move in two days will cause some serious margin calls no doubt. A "guilt by association" effect held back prices of other precious metals today. In fact, don't be surprised to hear of some forced selling of silver and gold to cover trading losses in platinum.
When stocks are on a run higher it's because investors are looking for "earnings" growth. Here are two casualties [iShares Dow Jones Select Dividend ETF (NYSEARCA:DVY) and iShares NASDAQ Biotechnology Index ETF (NASDAQ:IBB)] where earnings are only a secondary factor.
Everyone's talking about the low VIX [Volatility Indicator] which historically when this low means investors are "complacent" and there's little "fear." With a brief exception last summer for example the VIX has been in a steady decline. Usually a reading below 20 indicates complacency and above fear. Many market technicians have been scrambling to redefine the indicator's relevance. To date no one has discovered anything very meaningful that makes sense of readings over the past few years.
Elsewhere other sectors we're
pumping featuring include:
Okay, well that's enough pumping coverage for one day. Enjoy your Thanksgiving Holiday and please be safe.
Disclaimer: The ETF Digest maintains positions in: streetTRACKS Gold Trust ETF (NYSEARCA:GLD), iShares Silver Trust (NYSEARCA:SLV), Central Fund of Canada (NYSEMKT:CEF), First Trust DJ Internet Index ETF (NYSEARCA:FDN), Internet HOLDRS (NYSE:HHH), iShares NASDAQ Biotechnology Index ETF (IBB), iShares Dow Jones Select Dividend ETF (DVY), PowerShares Zacks Micro Cap (NYSEARCA:PZI), PowerShares Value Line Timeliness Select (PIV), PowerShares WilderHill Clean Energy ETF (NYSEARCA:PBW), iShares MSCI Spain Index ETF (NYSEARCA:EWP), iShares S&P Latin America 40 Index (NYSEARCA:ILF), iShares MSCI Australia Index (NYSEARCA:EWA), India Fund Inc. (NYSE:IFN), Templeton Russia & Eastern Europe Fund CEF (NYSE:TRF) and iShares FTSE/Xinhua China 25 Index (NYSEARCA:FXI).