Wednesday Outlook: Commodities, Emerging Markets

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There are a lot of bears who believe the recent light volume market rallies off the lows are just one big tease and trap. I’m in the “show me” camp. Sitting in cash can be tiresome and trading range environments are generally unproductive meat grinding affairs.

I thought bulls were able to hold things together well today given light volume and crummy news. Most bears seem bewildered, exhausted and unsure what to make of things.

They say we’re in a bear market. “They” are wrong “so far”. We’ve just had a correction similar in scope to that of last summer.

They say we’re in a recession. “They” may be right at some point but stocks seem oblivious “so far”.

Have a pleasant day.

Disclaimer: Among other issues the ETF Digest maintains long or short positions in UDN, USO and SLX.

Comments

[contrariwise]

Brilliant as usual, although I do wish you'd finish what you were saying about the farmer's daughter...

[David Fry]

It was an Arkansas farmer but I'm restricted regarding jokes with a political slant.

[jr7107]

Great analysis David. I think you can be confident of one thing. That the current sideways movement will break either up or down. Maybe depending on exactly how exhausted those bears are.

[ericinNE]

The bears are less exhausted than some might think. Range trading is boring, but .5%-1% per day profit adds up quick. When the spindoctors' spiel finally gets blown out, and reality is driven into the bull's face, us bears are gonna eat some lunches.
Love your reports, David! It's my favorite read on SA.