Market Talk April 2009

[JTH]

You know before we had the 666 low, all sorts of talking heads were calling for lows below 600.

Than we get this short rally and these same type talking heads are calling 900s. These same folks are saying we won't see the 666 bottom again.


Why isn't anyone calling for a test of the bottom? I don't get it, is there something I don't understand?

[etftalk]

"Most" bottoms are tested. The problem is these emotional folks are only seeing what's happening right now, in my opinion. They could be right based on the Nasdaq successfully testing the lows already. We'll have to see.

[XL-entLady]

John Lee, who seems to get it right more often than not, does a quarterly forecast of major markets. Here's the latest one:

http://safehaven.com/article-12983.htm

Lady

[JTH]

"Most" bottoms are tested.

Thanks Tom. I do admit I'm a bit of a cynic when it comes this market. I'm still waiting for a close above the red trendline, before I get bullish.

93

[JTH]

Looking at the 15 minute chart, the Slow STO & ADX look tired. Half of todays price action was made in the first 15 minutes, the rest has been up & down. I have to wonder to myself is all the good news now priced in? I suppose the bulls can rejoice that there wasn't a massive selloff.

95

[etftalk]

I have to wonder to myself is all the good news now priced in? I suppose the bulls can rejoice that there wasn't a massive selloff.
I got an early indication from another one of my favorite indicators - the email indicator. I haven't gotten hate mail in a long time, but I got a nasty one today. That's usually an indication that things are about to turn. :)

[JTH]

That's usually an indication that things are about to turn. :)

If it's any consolation to you, my dad's the admin/moderator on a gun forum. Oh the drama that gets stirred up from time to time. Kind of like having a big drunken family reunion. And the emails... I'm glad I don't have to roll some of that stuff off my shoulders. I suppose you get use to it after a while, but not me.

[XL-entLady]

Did you see what REIT's did today?! VNQ up 8.6%. VNO up 13.2%. :eek:

Lady

[XL-entLady]

ETF Rewind - Week 14 (04/03/09) (http://marketrewind.blogspot.com/2009/04/etf-rewind-week-14-040309.html)

http://4.bp.blogspot.com/_uzVbkLlVFKM/SdezrSL5nzI/AAAAAAAAB7c/cxCTRJuUKkU/s400/Week_14_Table.png (http://4.bp.blogspot.com/_uzVbkLlVFKM/SdezrSL5nzI/AAAAAAAAB7c/cxCTRJuUKkU/s1600-h/Week_14_Table.png)(Click Image to Enlarge/ Glossary (http://marketrewind.blogspot.com/2008/09/weekly-rewind-retool.html))
"Lest we get too excited here, a fourth week of gains that left the S&P500 (SPY) up another +3.2% really just has the indices back to early February levels. Among the majors, Emerging Markets (EEM) posted the healthiest rise of +6.8%, while domestically the greatest strength was shown in the Small Caps, as represented by the Russell 2000 (IWM), up +6.4%. Meanwhile, Real Estate (IYR) managed a whopping gain of +15.6%, even as Precious Metals (DBP) continued to soften, down -3.4%."


http://marketrewind.blogspot.com/

Lady

[etftalk]

I see financials are the top 4-week gainer. That's about how long I've owned FAZ. :eek:

[XL-entLady]

I see financials are the top 4-week gainer. That's about how long I've owned FAZ. :eek:
I finally cut my losses and dumped FAZ at a considerable loss. But those precious metals ETFs that have 'softened'? They make up a third of my portfolio, even after I sold my GTU last week. :sick: I'm going to lighten up, either by selling my gold miners or some of my SLV.

I'm looking hard at a small caps value ETF and maybe a REIT. Anyone else looking in those directions? I'd love your comments pro or con!

Lady

[etftalk]

Is today's sell-off another short pullback, like we saw last week, or is this the start of the next leg down? Hard to say for sure, but earnings will likely be the key.

In a bear market we'd normally sell any two-day rally in stocks. If the market can rebound again after another day or two of selling, perhaps we'll have to take the bullish a little more seriously.

[JTH]

Interesting candlesticks today, but too much choppyness for my taste. As usual, I'm waiting for confirmation and getting sick and tired of being sick and tired :rolleyes:

106

[etftalk]

Oscar was buying the dips today so he expected some sort of intraday rally. I thought about lighten up on some of those short ETF's but I am not convinced that the market can rally from here, although Ebb and Fred do have ETF buy signals for Tuesday.

[Gumby]

Oscar was buying the dips today so he expected some sort of intraday rally. I thought about lighten up on some of those short ETF's but I am not convinced that the market can rally from here, although Ebb and Fred do have ETF buy signals for Tuesday.

I am watching and waiting for the earnings to come in. If this rally extends with poor earnings then I will probably dump my shorts. For some reason, the market seems to want to defy gravity. Earnings should move the market one way or the other. Then again, maybe the market will ignore the earning and continue higher. Seems like the market has been ignoring much of the bad news lately.

[etftalk]

Is this sell-off because of Soros' statement, are we falling on news, or is this the market finally realizing it is overbought in a bear market?

http://www.bloomberg.com/apps/news?pid=20601087&sid=au9IadEXoQlA&refer=home

[JTH]

Is it just me, or are financials acting stronger than the markets?

[etftalk]

Yes they are. XLF only down 1.6%. SPY down 2.4%. :mad:

I may start to lighten up on FAZ and add to my BGZ. Or better yet, short BGU for the leverage ETF reasons we talked about.

[XL-entLady]

Is it just me, or are financials acting stronger than the markets?


Yes they are. XLF only down 1.6%. SPY down 2.4%. :mad:

And the Naz is down most of all. So much for my Q's. I'm starting to feel like a contrarian indicator. :rolleyes: Went to the dentist today. So far, my root canal was the best thing that has happened to me today.:nuts:

Lady

[etftalk]

Went to the dentist today. So far, my root canal was the best thing that has happened to me today.:nuts:

Lady
:laugh::laugh:

[JTH]

Here are a few minor observations I've noticed. We tested the 60 minute 50 SMA and the 15 minute 200 SMA all day today. We've also created a small 4 day channel.

Considering the 20 point drop today, I was surprised the a scan didn't turn up more bearish results. :huh:

108
109

[JTH]

We got another bounce on the channel, any thoughts on where the breakout will happen?

112

[etftalk]

It looks like a bull flag, actually. That would mean a move higher?? But it's not a buy signal until the declining trend breaks to the upside.

[XL-entLady]

Saturday, April 11, 2009

ETF Rewind - Week 15 (04/09/09) (http://marketrewind.blogspot.com/2009/04/etf-rewind-week-15-040909.html)

http://3.bp.blogspot.com/_uzVbkLlVFKM/SeDUm0DJyiI/AAAAAAAAB8s/rxc4pU_iRBU/s400/Week_15_Table.png (http://3.bp.blogspot.com/_uzVbkLlVFKM/SeDUm0DJyiI/AAAAAAAAB8s/rxc4pU_iRBU/s1600-h/Week_15_Table.png) (Click Image to Enlarge/ Glossary (http://marketrewind.blogspot.com/2008/09/weekly-rewind-retool.html))The holiday shortened week brought us a fifth period of gains, first cooling off overbought conditions only to then close higher on the unexpected positive pre-announcement from Wells Fargo (Reuters - Fargo Boosts (http://www.reuters.com/article/ousiv/idUSTRE5386I720090410)). In fact, the S&P500 (SPY) posted a large gap higher Thursday to end the week up +1.8%.


Week Sixteen of 2009 features both the opening of the earnings floodgates, and key retail sales, manufacturing and housing reports, as follows:


Yahoo! - U.S. Economic Calendar (http://biz.yahoo.com/c/ec/200916.html)
Yahoo! - U.S. Earnings Calendar (http://biz.yahoo.com/research/earncal/20090413.html)

Over the longer-term horizon, the NASDAQ 100 (QQQQ), Emerging Markets (EEM), and several major Sector ETFs are now within striking distance of their 10-month moving averages, potentially confirming the apparent change in investment tone. Additionally, the VIX (implied options volatility) has now downshifted below 40. Note, however, in as much as we appear to be breaking out of the down-trend channel, how stretched the VIX has become. It will be interesting to see how the broader markets react as these leading indices respond to their first key level (http://marketrewind.blogspot.com/2009/04/040909-congestion-around-vwap.html) tests. Meanwhile -- Enjoy Your Holiday Weekend!

http://3.bp.blogspot.com/_uzVbkLlVFKM/SeDU3ZTf7dI/AAAAAAAAB80/1FBo10VrKew/s400/Week_15_RSI.png (http://3.bp.blogspot.com/_uzVbkLlVFKM/SeDU3ZTf7dI/AAAAAAAAB80/1FBo10VrKew/s1600-h/Week_15_RSI.png)

http://marketrewind.blogspot.com/

Lady

[etftalk]

Wow, the financials are up strong in this down market. Dow down 70. FAS up, FAZ down.

[JTH]

Wow, the financials are up strong in this down market. Dow down 70. FAS up, FAZ down.

Yes I thought that was strange. I need to stop trying to make sense of this market, especially the financials. Like Jeff Macky said last week. "The game is fixed"

[etftalk]

Like Jeff Macky said last week. "The game is fixed"
LOL, love Macky. I am torn over something he said the other day. He said, "deal with it folks, the bottom's in", or something along those lines.

I'm not sure I agree, but I dont think we can make money fighting Macky. At least give us a test of the lows so we can buy low. :)

[XL-entLady]

This may not be the right thread for the post because this link has data for far more than just April. But I found this "ETF Lab" link on Traders Talk and it has a huge amount of ETF data that we should probably all absorb. And I've still got company so my time is short. I encourage everyone to check this one out.

http://www.traders-talk.com/mb2/index.php?act=attach&type=post&id=10592

Lady

[JTH]

As always Lady, thank you for the excellent link.

OBTW did you read the slope for hope? Excellent analisys on what type of market grops we have.

[JTH]

FAZ is making some small gains today. That would make perfect sense now that I'm not holding it.

So if a dog bites your hand do you continue to pet the dog? I do :rolleyes:

Anyways, Once again our defender of common sense, CNBC's Jeff Macky was swatting down those other pesky traders Monday. Once again those other traders were trying to prop & pawn off their holdings on Joe Public, while Jeff tells us the truth about Oil, Copper, Gold, & the financials.


FAZ Y U B like that?
119

[Uptrend]

Time to load up on FAZ Pet the bear!

BTW I am starting to keep a logbook of sorts of trades, and the conditions of what went wrong and what went right. For example when I start to realize a profit on a trade, but have not sold, I tend to try and convince myself that it is time to book profits, and sell early, but usually could have let the position run further. Is that the fear of failure or the fear of success?

[etftalk]

Good idea on the logbook.

Gary Smith (not Gary B. Smith on Fox), who wrote the book, How I Trade for a Living, said his trades that he let run were the reason for his success.

It's a pretty good book. A litttle out dated but he talks about how he went from years of losing, into being a successful trader.

[XL-entLady]

"
What's wrong with this picture?
Below is a chart showing the level of daily New Highs on the New York Stock Exchange. Below that chart is the S&P 500's chart.
Here are your questions today ...
1. Look at the level of New Highs going back to April of 2008. Compare that to the action the S&P 500.
Question: What is wrong with this picture?
2. Now look at the S&P 500's chart. Note the price action from November 2008 to yesterday.
Question: What is now happening for the third time?
Question: What was significant about yesterday's close and what does that mean?

** Feel free to share this page with others by using the "Send this Page to a Friend" link below.
http://stocktiming.com/images/2009/April/15%20Wednesday/-%20highs.png
Answers to the above Questions ...
1. Look at the level of New Highs going back to April of 2008. Compare that to the action the S&P 500.
Question: What is wrong with this picture?
Answer: The yearly New Highs are still at depressed levels ... levels that are associated with Bear Markets or corrections. Historically, for a Bull Market or a strong underlying rally condition a minimum of 100 is an important level ... at 50+, conditions are starting to percolate. To have only 3 out of thousands of stocks reach a New High yesterday is a very poor condition.
2. Now look at the S&P 500's chart. Note the price action from November 2008 to yesterday.

Question: What is now happening for the third time?
Answer: The S&P has hit its resistance line for the 3rd. time.
Question: What was significant about yesterday's close and what does that mean?
Answer: The S&P closed slightly above the resistance line on Monday, and then fell below it yesterday. It means that the S&P is "NOW testing a critical 5 month resistance level". The S&P 500 needs to move past this resistance level in order to keep the market moving higher. A downside failure would result in a pull back."

http://stocktiming.com/Wednesday-DailyMarketUpdate.htm

Lady

[JTH]

What's wrong with this picture?

"You're traveling through another dimension -- a dimension not only of sight and sound but of mind. A journey into a wondrous land whose boundaries are that of imagination. That's a signpost up ahead: your next stop:"


599:toung:

[XL-entLady]

"You're traveling through another dimension -- a dimension not only of sight and sound but of mind. A journey into a wondrous land whose boundaries are that of imagination. That's a signpost up ahead: your next stop:"


599:toung:
:eek: But you could be right ....

[XL-entLady]

Sunday, April 19, 2009

Comparing the Technical Strength of Sectors (http://traderfeed.blogspot.com/2009/04/comparing-technical-strength-of-sectors.html)

http://1.bp.blogspot.com/_7VHLCUlm_9o/SesTPDQ3vtI/AAAAAAAACa4/ADfG5DDlC8M/s400/Sector041809.gif (http://1.bp.blogspot.com/_7VHLCUlm_9o/SesTPDQ3vtI/AAAAAAAACa4/ADfG5DDlC8M/s1600-h/Sector041809.gif)
At a reader's suggestion, I have compiled the last five week's data on Technical Strength for eight S&P 500 sectors and displayed them above. This gives us a quick visual look at which sectors are strongest and weakest and which are gaining and losing strength.

Technical Strength is the name that I gave to a proprietary indicator that measures short-term trending behavior. Basically, a stock, sector, or index can be said to be trending if it has a high ratio of directional movement to total movement. The Strength readings for each sector vary from +500 (strong uptrend) to -500 (strong downtrend). Readings between -100 and +100 suggest no significant trending.

Each morning before the market open, I post to Twitter (http://www.twitter.com/steenbab) the Technical Strength status of the 40 stocks in my basket (five of the most highly weighted issues in each of the above eight sectors). This is a great way of staying on top of the market's day-to-day shifts in trending behavior.

Notice that almost all of the bars are above zero. Right away that tells you that we've been in an intermediate-term uptrend. That might seem obvious, but you'd be surprised how many people have been emailing me for the last several weeks, telling me that the rally is phony, that it's about to turn, that it's not grounded in fundamentals, etc. Perhaps that will prove to be worthwhile investment advice. It is worse than worthless as trading guidance.

When the great majority of stocks are moving in sync, that's not usually when markets sustain a turnaround. Rather, prior to important reversals, we see rallies peter out, with fewer stocks registering fresh new highs and fewer stocks and sectors sustaining their Technical Strength. Lately, we've seen strength in the Materials sector (note the rising Technical Strength week over week, above) and among the Financial stocks. The Materials shares are reflecting growth themes, especially among emerging economies. The Financial stocks are reflecting growing optimism regarding bank recapitalization. It is difficult to sustain the downside when these themes are dominant.

That having been said, look at the last two column bars for each of the sectors. Some of the sectors gained Technical Strength on the week, others lost a bit. This kind of mixed performance while the overall S&P 500 Index is making new highs suggests that the rising tide is not lifting all ships equally. I am watching this carefully, as such slowing down of strength is what we'd expect to see prior to a market consolidation (See the recent indicator post (http://traderfeed.blogspot.com/2009/04/integrating-indicators-for-multifaceted.html) for further evidence of a slowdown in market strength).

Finally, watch that XLY to XLP ratio; it's a nice indicator of growth interest vs. defensiveness among stock traders. It pulled back last week, as the chart indicates; we also pulled back in XLF, which strongly reflects banking stock interest. Those themes will be front and center as we start next week's trade."

http://www.traderfeed.blogspot.com/

Lady

[XL-entLady]

ETF Rewind - Week 16 (04/17/09) (http://marketrewind.blogspot.com/2009/04/etf-rewind-week-16-041709.html)

http://1.bp.blogspot.com/_uzVbkLlVFKM/SevHQlYJ1OI/AAAAAAAAB-k/oLTwMSLm3wU/s400/Week_16_Table.png (http://1.bp.blogspot.com/_uzVbkLlVFKM/SevHQlYJ1OI/AAAAAAAAB-k/oLTwMSLm3wU/s1600-h/Week_16_Table.png)(Click Image to Enlarge/ Glossary (http://marketrewind.blogspot.com/2008/09/weekly-rewind-retool.html))
http://marketrewind.blogspot.com/

[etftalk]

Interesting turn of events near the close. A reversal (or swing) day. That 825 area looks pretty important for the S&P on Thursday.

[JTH]

UPS didn't seem to get much news today.


http://online.wsj.com/article/BT-CO-20090423-716743.html

2nd UPDATE: UPS 1Q Net Dn 56%, Expects 2Q Profit Below Views


By Bob Sechler
Of DOW JONES NEWSWIRES

United Parcel Service Inc. (UPS) said Thursday that an economic recovery in the U.S. and Asia is expected by early 2010, though Europe may take longer to revive.
The world's largest package delivery company by revenue is viewed as a bellwether for global economic activity, and the broad slowdown saw it report a 56% drop in first-quarter earnings and offer disappointing guidance for the three months to June 30.
But despite what Chief Financial Officer Kurt Kuehn said is shaping up as a "challenging" second quarter, he and Chief Executive Scott Davis voiced optimism the U.S. economy "will hit bottom later this year" and then begin a recovery.
They said economies in Asia should recover on the same basic trajectory, although Europe likely will lag, partly because of slower enactment of government stimulus programs.
As for China, Kuehn noted that it remains a relative bright spot amid the global slowdown. UPS' Chinese export volume -- meaning Chinese businesses shipping goods out of the country -- was up 10% to 12% in the first quarter, about the same growth rate as in the fourth quarter.
"Clearly, [China] is not growing at the rate it was [prior to the global downturn], but reports of China's demise are greatly exaggerated," Kuehn said in an interview.
Still, UPS shares were off 2.5%, at $53.37, in recent trading after the company's first-quarter results fell short of Wall Street's consensus expectations and after Kuehn made clear that conditions may well get worse before they start to improve.
The company said average daily U.S. domestic shipping volume will be off 4% to 6% in the second quarter, compared to a 4.3% drop in the first quarter.
"The second quarter will be a bit more challenging than the first," Kuehn said on a post-earnings conference call with analysts.
UPS forecast second-quarter earnings of 45 cents to 55 cents a share. Analysts polled by Thomson Reuters projected 65 cents.
The company reported first-quarter net income of $401 million, or 40 cents a share, down from $906 million, or 87 cents a share, a year earlier.
The results included a writedown related to the retirement of 44 McDonnell-Douglas DC-8 aircraft. The company said it was retiring the entire DC-8 fleet earlier than expected because of overcapacity. Earlier this month, competitor FedEx Corp. (FDX) said it was grounding 14 aircraft for similar reasons.
Excluding items, UPS pegged its first-quarter profit at 52 cents a share, the low end of its February forecast and below Wall Street's target of 56 cents. Revenue fell 14% to $10.94 billion, compared to analysts' consensus expectation of $11.44 billion, according to Thomson Reuters.
Operating margin fell to 6.6% from 11.8%, while consolidated average daily volume -- which includes international shipments -- slid 3.9% and average revenue per package fell 6.9%.
The company said per-package revenue slipped in the quarter because customers opted to reduce package weights to save money, and because of reduced fuel surcharges.
-By Bob Sechler, Dow Jones Newswires; 512-394-0285; bob.sechler@dowjones.com
(Kerry E. Grace contributed to this report)

[JTH]

Gold & Silver plus the markets are up. Who's telling the real story? :rolleyes:

[etftalk]

I think we could be getting close to a bears capitulation, meaning the weak bears will be giving up. That would mean a short-term top is near (I can't even say that with a straight face anymore, since I've been saying it for weeks).

Using some conspiracy theory predictions, I'll be looking toward May 6-8 as some potential "trouble" for the market.

[XL-entLady]

ETF Rewind - Week 17 (04/24/09) (http://marketrewind.blogspot.com/2009/04/etf-rewind-week-17-042409.html)

http://3.bp.blogspot.com/_uzVbkLlVFKM/SfMqpfk06MI/AAAAAAAACBM/y4nAthAe1yY/s400/Week_17_Table.png (http://3.bp.blogspot.com/_uzVbkLlVFKM/SfMqpfk06MI/AAAAAAAACBM/y4nAthAe1yY/s1600-h/Week_17_Table.png)(Click Image to Enlarge/ Glossary (http://marketrewind.blogspot.com/2008/09/weekly-rewind-retool.html))We finally saw a pause in the recovery incline, but only by a touch with the S&P500 (SPY) ending the week down just -0.5%. However, the NASDAQ100 was able to post a seventh week of gains at +1.1%, leaving it just -1.0% below its 10-month moving average (http://marketrewind.blogspot.com/2009/03/trading-200-day-linkfest.html).
The weekly trade was highly news driven, starting with fresh bank nationalization fears (Deal.com - Stressed Out (http://www.thedeal.com/dealscape/2009/04/stressed_out_over_stress_tests.php)), followed by a flood of earnings and economic reports, merger and acquisition happenings (Register - Oracle Sun (http://www.theregister.co.uk/2009/04/25/oracle_java_sun/))(NYT - Pepsi Bottling (http://dealbook.blogs.nytimes.com/2009/04/24/the-pepsi-challenge-how-to-structure-a-deal/)), and ending with the release of the "stress-test" methodology (WSJ - Water Torture (http://online.wsj.com/article/BT-CO-20090424-717272.html)). You can see the wide range this put the market through in the RSI charts below.
Other equity indices joining the NASDAQ100 in approaching their long-term averages are Emerging Markets (EEM), Consumer Discretionaries (XLY), and, naturally, Technology (XLK). Although four week recoveries in these sectors have been dwarfed by those of Financials (XLF) and Real Estate (IYR), up +16% and +26% respectively, you can see how far those two have yet to go before moving back into bullish territory.
Week Eighteen of 2009 features another heavy earnings and economic calendar, including a Federal Open Market Committee statement out Wednesday, as follows:


Yahoo! - U.S. Economic Calendar (http://biz.yahoo.com/c/ec/200918.html)
Yahoo! - U.S. Earnings Calendar (http://biz.yahoo.com/research/earncal/20090427.html)

Looking at Price Index readings for next week, the market remains slightly overbought, particularly in the Materials (XLB), Industrials (XLI), Consumer Discretionary (XLY), and Technology (XLK) spaces. It will be interesting to see how these overbought reading play against strong Relative Strength in these very same areas. On the flip side of the coin, Treasuries (TLT) and the US Dollar (UUP) look relatively oversold. A recipe for rotation on the right news flow? Enjoy Your Weekend!

http://2.bp.blogspot.com/_uzVbkLlVFKM/SfMqv1qpEJI/AAAAAAAACBU/9rb7Wr26tMQ/s400/Week_17_RSI.png (http://2.bp.blogspot.com/_uzVbkLlVFKM/SfMqv1qpEJI/AAAAAAAACBU/9rb7Wr26tMQ/s1600-h/Week_17_RSI.png)
http://marketrewind.blogspot.com/

[justbizness45]

Thanks Lady!!

[XL-entLady]

The Moose call position for this week is cash. The commentary is pretty interesting.

http://www.decisionmoose.com/Moosecalls.html

Lady

[XL-entLady]

Do you think realty and home construction ETFs are really this good yet??:confused:


"Weekly TCA-ETF Rankings
41 of our 57 sectors are in the "buy" range. Many sectors still have extremely strong ratings, although some ETF's have moved into our "penalty box". This designation means that the sector cannot qualify as "buy" on technical grounds. You can think of it like a sell stop, only with a more complicated basis.

(http://oldprof.typepad.com/.a/6a00d83451ddb269e201156f5ec68f970c-popup)

http://oldprof.typepad.com/.a/6a00d83451ddb269e201156f5ec68f970c-450wi (http://oldprof.typepad.com/.a/6a00d83451ddb269e201156f5ec68f970c-popup)


http://www.greenfaucet.com/technical-analysis/etf-update-whats-working/40095

Lady

[etftalk]

Do you think realty and home construction ETFs are really this good yet??:confused:
There is a good chance of whipsaws on any buys right now. Even Carl at Decision Point said that about his recent model buys.

[XL-entLady]

I don't know how many of you read Dave Fry, but his blog has become one of my regular stops. I really like how he posts the various charts with a quick statement about each one. Here is the first portion of his latest:

MARKET COMMENT

April 28, 2009


http://www.etfdigest.com/members/davesdaily/davesdaily042809_files/image011.jpg

I wish my Money & Banking class in college was this easy—hell, even gym was hard by comparison to current bank stress tests. Basically it’s an open book test allowing banks to set their own evaluations on some toxic waste and hope investors take it all in stride. The false and misleading statements from CEOs like BAC CEO Ken Lewis are, in ordinary times, shocking. These days it passes for business as usual. “We don’t need any capital….we’re sound...we can return TARP money today…and so forth.” So, BAC and C do in fact need more capital. Who knew!?!

Today markets were pulled lower by iffy stress test results and pushed higher by better than expected (there’s that bullish slang again) consumer confidence numbers.

Volume remains light and one would imagine more action will result from the Fed meeting aftermath although it should be a nonevent but then so was the last one. Nevertheless, any time the Fed meets investors pull in their horns until an announcement is made.

http://www.etfdigest.com/members/davesdaily/davesdaily042809_files/image012.jpg



http://www.etfdigest.com/members/davesdaily/davesdaily042809_files/image013.jpg


http://www.etfdigest.com/members/davesdaily/davesdaily042809_files/image014.jpg

[more]

http://www.etfdigest.com/davesDaily.php


Lady