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David Fry
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David Fry writes a subscription newsletter focused on technical analysis of exchange-traded funds, called ETF Digest (www.etfdigest.com). Dave founded the ETF Digest in 2001 and was among the very first to see the need for a publication that provided individual investors with information and... More
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ETF Digest
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The Best ETFs: U.S. Equities (A Companion Guide To Building Your ETF Portfolio)
  • BEARS SPOIL RALLY 0 comments
    Dec 28, 2011 7:11 PM | about stocks: SPY, IWM, QQQ, BAC, MS, JPM, GS, KBE, KRE, XLF, T, IYZ, XLB, XHB, IEF, TLT, HYG, UUP, FXE, GLD, GDX, SLV, DJP, DBB, JJC, JJG, DBA, USO, UGA, UNG, FCG, XLE, EZU, EFA, EEM, EWJ, EWA, EWC, EWU, EWG, EWY, EWZ, RSX, EPI, FXI

    Wednesday was a stinker. There was widespread selling in all asset classes except for U.S. bonds. Much of this selling may have been due to year-end tax selling; a break in support levels for the euro; much weaker commodities especially in precious metals, and more worries about the health of the U.S. economy, corporate earnings and...you guessed it...the eurozone.

    Gold and silver losses have become more severe. In addition to tax loss selling there may be large redemptions occurring with hedge funds and the unique "mark to market" tax issues affecting commodity markets. In this case, even if the position isn't sold, 60% of long positions are treated as long-term gains with the balance as ordinary income.

    The market is also rumor prone with volume still light. Most rumors Wednesday revolved around the eurozone where euro flight to offshore havens was much discussed. Further more investors are beginning to recognize the previous eurozone fix wasn't much of a fix at all. Rather it just bought some time. The focus remains on Italy where Italian debt needs to be sold, not just this week, but repeatedly. Investors are worried about collateral being put up for loans. Pay attention to this is the watchword.

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    Stocks: SPY, IWM, QQQ, BAC, MS, JPM, GS, KBE, KRE, XLF, T, IYZ, XLB, XHB, IEF, TLT, HYG, UUP, FXE, GLD, GDX, SLV, DJP, DBB, JJC, JJG, DBA, USO, UGA, UNG, FCG, XLE, EZU, EFA, EEM, EWJ, EWA, EWC, EWU, EWG, EWY, EWZ, RSX, EPI, FXI
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