Another day and another grind higher for “bonus-hungry” bulls. There wasn’t much news allowing a rally except for better Jobless Claims, which came in at 338K vs 348K expected, and prior 380K. When you think about it, there wasn’t any worrying for bulls when the numbers the previous two weeks were dreadful. Jobless benefits are set to run-out this week for many would-be claimants. Also, once season shopping ends, along with merchandise returns and deals, many temporary workers will be laid off.
It’s easy to thumb your nose at current market levels and elevated PE ratios. In many ways you get this déjà vu feeling going back to dotcom days. Then as now, there are always many rationalizations for current market conditions. After all, not many people are chatting about the NASDAQ at over 4,000, right? Many said, as the NASDAQ imploded over 10 years ago, that we’d never see those levels again in our lifetime. Well maybe if you were 75 at the time I guess.
Anyway, this is one reading (see chart below) to give you caution. If markets continue higher it’s due to the Fed and they would be making new history
Leading the charge higher Thursday were Industrials (XLI), Energy (XLE), Materials (XLB), Healthcare (XLV), Miners (XME), Biotech (IBB), Consumer Discretionary (XLY), Japan (EWJ), Solar (TAN), Homebuilders (ITB), Gold (GLD), Silver (SLV) and Agriculture (MOO) among others. Lagging issues included Bonds (TLT), Emerging Markets, Brazil (EWZ), China (FXI), India (EPI), Russia (RSX), Turkey (TUR) and Thailand (THD).
Today we featured a short chart video on the troubles in Thailand (THD) from both weekly and daily chart perspectives.
Our staff also puts together the daily top 20 ETF market movers by percentage change in volume for gainers, decliners and emerging volume.
Volume can only be described as: “I hope you’re enjoying Vail”? Breadth per the WSJ was positive.
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There are many signs indicating a correction is near and that’s based on both technical and emotional reasons.
Volume is pathetically light so we don’t get much of a clue there except to note that traders will return to enmass until Monday January 6 th . There are only a handful of trading days left in 2013.
Friday doesn’t bring much listed new information.
Let’s see what happens.
ETF Digest™
Disclaimer: The charts and comments are only the author’s view of market activity and aren’t recommendations to buy or sell only any security. Market sectors and related ETF’s are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period. Chart annotation’s aren’t predictive of any future market action rather they only demonstrate the author’s opinion as to a range of possibilities going forward. More detailed information, including actionable alerts, are available to subscribers at www.etfdigest.com