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D Fry Market Outlook 20 12 2006

If when you awake and read the crummy news from Thailand [currency restrictions], producer prices coming in "hot" at 2%, and Oracle Corp. (NYSE:ORCL) trading down 5% in Europe, you might have thought Tuesday would be worse than rough. But no! The amateur hour decisions out of Thailand were quickly reversed once military government officials got the midnight phone calls, huddled up and did one of those instant replay reversal deals. ["Hey, whatsamattah you! The market's down 15%!!!"]

Producer Price data was quickly isolated and set aside as the odd headline in MarketWatch read: "US Stocks end mixed; rising oil stocks offset PPI worries." Come again?

D Fry Market Outlook 20 12 2006_001

In the meantime, ORCL's weakness endured throughout the day but Software HOLDRS Trust ETF (NYSE:SWH) managed to gain fractionally supported by Microsoft Corp. (NASDAQ:MSFT).

D Fry Market Outlook 20 12 2006

D Fry Market Outlook 20 12 2006

D Fry Market Outlook 20 12 2006_004

D Fry Market Outlook 20 12 2006

D Fry Market Outlook 20 12 2006

D Fry Market Outlook 20 12 2006

D Fry Market Outlook 20 12 2006

D Fry Market Outlook 20 12 2006

You knew it might be a top when folks start stealing the wiring from utility poles for the copper content.

D Fry Market Outlook 20 12 2006

D Fry Market Outlook 20 12 2006

D Fry Market Outlook 20 12 2006

D Fry Market Outlook 20 12 2006

Other market movers today were in housing and financials.

D Fry Market Outlook 20 12 2006

D Fry Market Outlook 20 12 2006

Overseas Asian markets were pretty rattled by the Thai situation. It got me thinking this morning about an "Asian Contagion Part II." But, as noted authorities changed their minds, but it served as a reminder that perhaps some markets can't be trusted.

D Fry Market Outlook 20 12 2006

D Fry Market Outlook 20 12 2006

There are two major lessons today. First, be patient and stay disciplined. Emotional trading will just get you confused and impair your judgment. Second, Emerging Markets can be both very rewarding but also equally risky. If you can't stay with any market, stay out.

Good buddy Greg Newton [he of Naked Shorts fame] sent me this wonderful video today. Enjoy!

Disclaimer: Among other issues, the ETF Digest maintains positions in: S&P 500 Index (NYSEARCA:SPY), Energy Select Sector SPDR ETF (NYSEARCA:XLE), United States Oil Fund ETF (NYSEARCA:USO), PowerShares DB Commodity Index Tracker (NYSEARCA:DBC), streetTRACKS Gold Trust ETF (NYSEARCA:GLD), iShares Silver Trust (NYSEARCA:SLV), Central Fund of Canada (NYSEMKT:CEF), Euro Currency Trust ETF (NYSEARCA:FXE), iShares Lehman 7-10 Yr Treasury Bond ETF (NYSEARCA:IEF), iShares MSCI Malaysia Index (NYSEARCA:EWM) and iShares MSCI Emerging Markets ETF (NYSEARCA:EEM).

Source: David Fry's Daily Market Outlook