David Fry's Market Outlook for Wednesday

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Includes: DIA, EFA, EWC, GLD, ISL, PSI, QQQ, RCD, USO, XHB, XLF
by: David Fry

D Fry Market Outlook 02 05 2007

I wouldn't say, at least when viewing the NASDAQ, that 6 points higher offsets 32 points down from a day earlier. But, hey, a bounce is a bounce. The DJIA average was much higher thanks to the attraction of big names, and more than undid yesterday's decline. But inside the numbers things weren't that rosy.

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Volume was heavy, but advances and declines were only impressive on the DJIA whereas other indexes were either flat or negative.

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Overseas markets continue to do their thing, but are becoming noticeably more erratic.

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We still have more earnings to dribble-out this for the duration of the week, and then that will just about do it. More economic data will push markets one way or another as usual. The big number will be first with energy inventories tomorrow, and then the all important employment data on Friday. It should all be interesting as usual.

Disclaimer: Among other issues, the ETF Digest maintains long or short positions in: S&P 500 Index (NYSEARCA:SPY), MidCap SPDRs ETF (NYSEARCA:MDY), iShares Russell 2000 Index ETF (NYSEARCA:IWM), NASDAQ 100 Trust Shares ETF (QQQQ), PowerShares Dynamic Semiconductor (NYSEARCA:PSI), Rydex S&P Equal Weight Consumer Discretionary ETF (NYSEARCA:RCD), Rydex S&P Equal Weight Financial Services (NYSEARCA:RYF), streetTRACKS Gold Trust ETF (NYSEARCA:GLD), PowerShares DB Commodity Index Tracking Fund (NYSEARCA:DBC), PowerShares DB Base Metals Fund (NYSEARCA:DBB), iShares MSCI EAFE Index Fund ETF (NYSEARCA:EFA), iShares MSCI Emerging Markets ETF (NYSEARCA:EEM), iShares MSCI Pacific Ex-Japan Index Fund (NYSEARCA:EPP), iShares S&P Latin America 40 Index Fund (NYSEARCA:ILF), iShares MSCI Austria Index Fund (NYSEARCA:EWO), iShares MSCI Australia Index Fund (NYSEARCA:EWA), iShares MSCI Canada Index ETF (NYSEARCA:EWC), iPath MSCI India ETN (NYSEARCA:INP), iShares MSCI Germany Index Fund (NYSEARCA:EWG), iShares Trust FTSE-Xinhua China 25 Index Fund (NYSEARCA:FXI), First Israel Fund Inc. (NYSEMKT:ISL).