David Fry's Daily Market Outlook

While some things are impressive from the outside, a look under the hood can provide a better perspective. Today, Apple Computer Inc. (AAPL) announced a new product [iPhone] and the tech heavyweight was up over 8% which pulled the major tech index out of the red. But under the hood, market internals were not that impressive.

Overall most markets are getting off to a sloppy and fitful 2007 as investors try to get their bearings. This may take the rest of the month as earnings start to rollout. If earnings continue to impress so will stock prices. The sentiment switch from commodities to tech may be the new trend, but frankly it's too early to tell. With AAPL dominating action today and being such a heavyweight it fostered confidence in the tech sector.

In the meantime, Dr. Copper is back down and bouncing off the interim support levels [$2.50] we previously outlined.

Earnings will start flowing in earnest this week. The bullish attitude still dominates since markets when in this mode set aside/isolate bad numbers [Motorola Inc. (MOT), Dell Inc. (DELL) etc.] and focus on something good like AAPL. That's typical bull market action. It's just too soon to argue as some did today that tech is cheap. Google Inc. (GOOG) and now AAPL are the only tech companies that are innovating as best we can tell. "Old tech" may seem cheap, but what are they really doing for growth? Their only hope is that "capex" spending drives share prices higher.

Beware Emerging Markets -- they're not a one way ride higher. Just remember as recently as July investors were in tears.

I'm still recuperating from my fall and injuries [ribs/back/elbow] so today is a briefer summary again. But, at least I got this far, eh?

Have a pleasant evening.

Disclaimer: Among other issues, the ETF Digest maintains positions in: NASDAQ 100 Trust Shares ETF (QQQQ), First Trust DJ Internet Index ETF (FDN), Claymore Macroshares Oil Down (DCR), iShares MSCI Australia Index Fund (EWA), streetTRACKS Gold Trust ETF (GLD), iShares S&P Latin America 40 Index Fund (ILF) and iShares MSCI Emerging Markets ETF (EEM).