David Fry's Daily Market Outlook

|
Includes: AAPL, AMD, GDX, IBM, IEF, IEV, IYR, SMH, SPY, XHB
by: David Fry

 width=

iPod Nation

Our economy has more to it than just iPods doesn't it? Well, maybe not based on investor fixation with these gizmos. You own one of course or your children do. Anyway, investors are thrilled with Apple Computer Inc.'s (NASDAQ:AAPL) earnings report after the close, pumping the stock higher by nearly 6%.

 width=

 width=

At the same time Advanced Micro Devices Inc. (NASDAQ:AMD) is getting slaughtered in the after-hours after a disappointing earnings report driving the shares nearly 13% lower. This should negatively affect Semiconductor HOLDRs (NYSEARCA:SMH) tomorrow since chip manufacturing companies also disappointed today.

 width=

The market overall seems sloppy and the tape action looks tired. No doubt bulls are buying any dips, and there don't seem to be many seller's around. Earnings news still dominates action, but could be undone by Leading Indicators tomorrow along with Philly Fed survey.

In the meantime, let's look at some indexes that seem the most important:

 width=

 width=

 width=

 width=

 width=

 width=

 width=

 width=

 width=

 width=

 width=

Overseas markets are just paralleling U.S. markets as almost all equity markets, awash in liquidity, are highly correlated currently.

 width=

 width=

Well, all these charts give you a pretty clear sense of investor sentiment and market conditions. The bulls still have the ball, and with complacency this high, expect dip buying to continue. But, as we saw just yesterday, any unexpected news can stampede the herd.

Disclaimer: The ETF Digest maintains positions in: iShares Lehman 7-10 Yr Treasury Bond ETF (NYSEARCA:IEF), iShares S&P 500 Value Index ETF (NYSEARCA:IVE), iShares Dow Jones Select Dividend ETF (NYSEARCA:DVY), Utilities SPDR ETF (NYSEARCA:XLU), iShares Dow Jones U.S. Real Estate ETF (NYSEARCA:IYR), streetTRACKS Gold Trust ETF (NYSEARCA:GLD), Market Vectors Gold Miners ETF (NYSEARCA:GDX), Euro Currency Trust ETF (NYSEARCA:FXE), iShares S&P Europe 350 Index (NYSEARCA:IEV) and iShares MSCI Emerging Markets ETF (NYSEARCA:EEM).

Comment on this article

About this article:

Expand
Want to share your opinion on this article? Add a comment.
Disagree with this article? .
To report a factual error in this article, click here