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<< Return to page 1 - Pre-Labor Day Malaise










































Sunday night was a great example of the how markets are affected by different time zones and an evolving news cycle. Asian markets were up significantly but European markets followed weakly. Then US markets were quite weak and ETFs related to Asia, for example, didn’t match the rally. EWH [Hong Kong ETF] was down 1.40% Monday while indexes there rose 3%. That’s a big miss but it reflects what becomes stale out of time zone index data. Further, it represents that there is little decoupling taking place.






As expected low volume allows the few remaining traders the opportunity to push indexes around and possibly exaggerate moves. Barring unexpected news, the real action probably won’t begin in earnest until most traders are back by the middle of next week. In the meantime, we’ll continue to amuse you until Wednesday.

Have a pleasant day.

Disclaimer: Among other issues the ETF Digest maintains long or short positions in QLD, IWM, UWM, XLY, XLV, RXL, XLP, UGE, IEF, UUP, DBC, DEE, GLD, DZZ, EFA, EFU, EEM, EEV and FXI.

Source: Tuesday Outlook: Commodities, Emerging Markets