Wednesday's Outlook: Where To From Here?

by: David Fry

P.T. Barnum never encountered our modern stock market complete with high wire acts, a cast of clowns and other circus performers. Bernanke & Co. cut interest rates and initially investors weren’t that impressed or surprised but with a large gap down opening, things were quickly oversold and buyers stepped-in.

No market trend once begun is a one-way street no matter the direction.

Just remember, the financial media makes a living on advertising revenue from all manner of talking heads with products for you to 'buy'. That means their guests and commentators will say what’s necessary to keep you in the casino. [You know how those are designed, easy to enter but where’s the exit?]

There’s someone with an abacus trying to tally Tuesday’s market internals. It must be tough and the following via the WSJ will need some revision. One thing is obvious - it was a heavy volume day.

Many will try and suggest yesterday was a good day. That’s a hard argument to make but those folks have soap to sell.

Let me say upfront: StockCharts is running VERY slow and that shouldn’t come as a surprise. Therefore annotating charts is a pain and this will be on the short side as a consequence.

Disclaimer: Among other issues the ETF Digest maintains long or short positions in: IEF and GLD.

Go to part 2 »