Follow us on twitter and become a fan of ETF Digest on facebook
Some rotation and profit-taking occurred in equity markets Friday for another light-volume day as the week comes to an end. Overall, there wasn’t much in the way of news to stimulate traders in either direction.
One area of notable news was another weekly drop in oil inventories (-4.7M barrels vs prior -2.9M Barrels), which pushed oil prices (USO) higher again and other commodity related sectors (no coincidence). These included commodity tracking ETFs (DBC) as well as beaten-down commodity related equity indexes such as Oil & Gas Exploration (XOP), Miners (XME), Peru (EPU), Brazil (EWZ) and EEM (Emerging Markets).
Other news was the large drop in bond (TLT) & (IEF) prices, which broke to fresh two-year lows. This was a significant event and will affect all borrowers including mortgages. Should this continue, the danger lies with bond vigilantes who could push interest rates much higher and threaten the Fed’s ability to control bond markets and their overall credibility. This is something the Fed won’t stand for.
Friday was the first day in recent memory that equity markets fell, if barely. Beyond the reversals and large movers already mentioned, other movers included: Silver (SLV), Leveraged Oil (UCO), South Korea (EWY), China (GXC), and Asia ex-Japan (AAXJ).
Today we featured a short video on the iShares Turkey ETF (TUR) 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 was once again light, perhaps only one-third of normal. Breadth per the WSJ was mixed.
…
This concludes a positive week but you’d be right being suspicious. After all there are fees at stake and we’re at a point where it’s easy for Da Boyz to manipulate things now. Nevertheless, onward we move to the next light week of trading.
There will be more important data coming next week. We’ll be around most days then unless things get too dull.
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