Tuesday Outlook: Commodities, Emerging Markets

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Sure! Give them a hand for entertainment if nothing else. But, in all seriousness, yesterday was scary. We all know the financials are in deep trouble. But will Fannie and Freddie become default candidates? Will the American auto industry survive? And, Merrill Lynch (MER) is holding a sidewalk sale if you happen to be around Wall and Broad. These are pretty unnerving conditions. Therefore you have to applaud those fearless hedge funds and trading desks [and whomever else you think has that muscle] with the funds and moxie to put the squeeze on anytime they like, no matter the news.

Have a pleasant day.

Disclaimer: Among other issues the ETF Digest maintains long or short positions in SPY, SDS, MZZ, IWM, TWM, QQQQ, QLD, XLY, SCC, XLI, SIJ, IYR, SRS, XLV, RSC, GLD, DBG, DBA, DAG, EFA, EFU, EEM, EEV, EWZ, RSX, EWC, FXI and FXP.

Comments

[Ames Tiedeman]

The market looks weak. I do not see any news that will spawn a real sustainable move up. The S&P 500 is going to 1000.

[Ames Tiedeman]

Some say gold to 1,600. GLD is one to watch.

[Kelly Lieberman]

The fed and central banks have been holding gold down as a last resort to fake us into believing the world is not in panic mode.
Believe them at your own risk...
I (and others) will buy GLD this morning at levels not seen yet, and Gold will rise in the next few weeks at rates so fast that there will be no stopping it. We have waited as we watched the heavy hand of market manipulation hold the top on the top down on a pressure cooker...
I believe it is as low as it will ever be in our lifetime (+/-3.00 intraday the next two volatile weeks). Buy now or cry later.

[SIMPLE d]

hmm. gold went up due to a weaker dollar in the first place. why doesn't the fed contract the money supply?

one problem ~ oil supply. I believe can be temporary...fuel from algae DOES look realistic and promising in the near term.

the other problem ~ i remember gold at 300...if the fed did contract the money supply that price would come back, or something near it. And contract the money supply is what the Fed did after the 1929 crash...if any meaty connection can be made i'm not sure.

they've been crashing the dollar to usher in the Amero. possibly.

Until we get abundant energy, we can count on destabilized markets. And our screwed up currency doesn't help...and if the nations of earth get tired of paying for their oil with dollars, we could have another problem...

Thanks Fry ~ always insightful

[Dan Walker]

Roo Rah for the PPT! If those guys would get out of the way, we could have a good flush and get this this crap over. If they had stayed out of it in 98, we would never have never gotten on this boat in the first place. Looks like we are in for crashus interuptus, a relief rally, and then the final plunge into Davey Jones locker. Oh well, I needed better point to set some shorts.

[David Lentz]

seems to me there's a lotta bears in the audience today.

prolly means a run-up to quicken their heartbeats.

[Russ Abbott]

Hi Dave, You often talk about "da boyz" and how they manipulate the market. Being somewhat naive about this, would you explain sometime what they got out of doing that. Do they, for example, pump the market up and then sell immediately? Does that work? Or are they trying to change the overall longer term direction? Does that work? I don't see how either one of these is really worth doing.

Thanks.

-- Russ

[Whidbey]

great as usual and much appreciated.