David Fry's Daily Market Outlook

It seemed like not too much happened by the end of trading today, particularly in U.S. markets. So if you're going to write any commentary you have to look more closely to find something worthwhile.

What's not happening? Tech. Why bother pointing that out? Because it's an important sector.

Okay, Goldman Sachs Group Inc. (GS) jettisons its commodity and stock sector indexes to S&P. You can expect the new product engineers at S&P to issue some more tech subsector ETFs linked to GS Tech Indexes like Hardware, Internet and Services for example. Maybe that will stir up the troops. Well, no probably not.

Let's stop and look where the real positive action continues to be -- and that's overseas, especially in emerging markets.

That's enough for what appeared a day of little progress in the U.S. However, the action in iShares Russell 2000 Index ETF (IWM) and MidCap SPDRs ETF (MDY) may prove a significant "tell" that there's a lot of strength and momentum under the market. The tech sector just isn't doing anything. Isn't that a "tell" of some negativity? Sure, but it reminds me of 1984 [yeah, I'm old] when tech, coming off a great year, fell while bigger names and other sectors did well.

The best action remains overseas "clearly." But it's also fraught with high risks as you can see by some of the 30% quick corrections that occurred only last year. So don't get too comfy and buy that Porsche just yet.

Tomorrow we get energy inventories and that may prove market moving given the cold weather in northern sections of the U.S.

Have a warm and pleasant evening!

Disclaimer: Among other issues, the ETF Digest maintains positions in: iShares Russell 2000 Index ETF (IWM), MidCap SPDRs ETF (MDY), ProShares Ultra MidCap400 (MVV), Rydex S&P 500 Equal Weight (RSP), NASDAQ 100 Trust Shares ETF (QQQQ), iShares Goldman Sachs Network Index Fund (IGN), First Trust DJ Internet Index ETF (FDN), streetTRACKS Gold Trust ETF (GLD), PowerShares DB Precious Metals Fund (DBP), iShares MSCI Emerging Markets ETF (EEM), iShares MSCI EAFE Index Fund ETF (EFA), iShares S&P Latin America 40 Index Fund (ILF), iShares MSCI Mexico Index ETF (EWW), iShares MSCI Brazil Index ETF (EWZ), iShares MSCI Japan Index ETF (EWJ), iShares MSCI Pacific Ex-Japan Index Fund (EPP), iShares MSCI Australia Index Fund (EWA), iPath MSCI India ETN (INP) and iShares MSCI Malaysia (EWM).