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D Fry Market Outlook 12 12 2006

Investors were on "Fed watch" yesterday for today's policy meeting news. Most expect nothing to change in policy. Surely they wouldn't want to give investors a lump of coal for the holidays by raising rates. While many bulls would like to see an interest rate cut, our reaction has been -- what for? As we see it, interest rates are low but money supply growth is too easy. Since the latter issue is putting pressure on the dollar, there may be more inflation-fighting rhetoric that would be dollar supportive.

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OPEC is due to meet on Thursday and they'll be trying hard to make us believe that they can hold a $60 floor for crude oil. Unfortunately the data released today shows more cheating by members.

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Commodity markets, apart from energy, were mostly higher. That caused DBC despite heavy energy weightings to be stable.

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Other markets near and dear to our hearts include:

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It is kind of an odds-and-ends look at markets, but we can't post them all can we? Anyway, tomorrow we'll be watching the Fed like others and then OPEC on Thursday. During the week we'll get earnings reports from trading desks brokers [dba, Global Megabanks N.A.] Tonight I see Texas Instruments Inc. (NASDAQ:TXN) is lowering their earnings and revenue outlook. Will the bulls be able to set that aside too? So far, "yes" since it's up in after-hours trading.

Disclaimer: Among other issues, ETF Digest maintains positions in: Euro Currency Trust ETF (NYSEARCA:FXE), iShares Lehman 7-10 Yr Treasury Bond ETF (NYSEARCA:IEF), PowerShares DB Commodity Index Tracker (NYSEARCA:DBC), streetTRACKS Gold Trust ETF (NYSEARCA:GLD), iShares Silver Trust (NYSEARCA:SLV), Central Fund of Canada (NYSEMKT:CEF), NASDAQ 100 Trust Shares ETF (QQQQ), India Fund Inc. (NYSE:IFN), Templeton Russia & Eastern Europe Fund CEF (NYSE:TRF), iShares FTSE/Xinhua China 25 Index (NYSEARCA:FXI), iShares MSCI Australia Index (NYSEARCA:EWA), iShares MSCI Canada Index ETF (NYSEARCA:EWC) and iShares S&P Europe 350 Index (NYSEARCA:IEV).

Source: David Fry's Daily Market Outlook