Friday Outlook: Commodities, Emerging Markets

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You can tell by watching the intraday action that institutions are dominating the action. I’m not referring to large registered investment advisors or your local bank trust department either. Nope, this is action from WS trading desks, hedge funds and perhaps even our 'activist' government. So, remember when action becomes this chaotic and inexplicable, it’s Da Boyz just doing their thing. They care not about fundamentals or anything else since they’re just living in the moment and can turn things on a dime.

I remain incredulous perhaps like you but impressed by the results of their actions.

Anytime you read a headline heralding a bear market you might as well expect things to go the other direction if only temporarily.

Have a pleasant weekend.

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, GLD, DBP, DBA, DAG, EFA, EFU, EEM, EEV, IEV, EWZ, RSX, FXI and FXP.

Comments

[phdinsuntan...:]

my hypothesis is PPT is buying oil in NYMEX
and they will get a payback in Wall Street next year.

2008 Jul 11 05:41 AM

[Alan von Al...:]

They're not after a payback. People don't go into government or get in bed with government for profit. It's about survival, keeping the lights on another quarter, or another couple weeks, or another 24 hours.

2008 Jul 11 05:56 AM

[User 152769:]

This is the most helpful and informative column on Seeking Alpha.

2008 Jul 11 08:34 AM

[parnelli96:]

Ditto!

2008 Jul 11 09:39 AM

[Art L.:]

Double ditto!

2008 Jul 11 12:46 PM

[TA:]

Fry is always a favorite

2008 Jul 11 04:40 PM

[X-15:]

ditto thrice

2008 Jul 13 02:29 AM