A TEMPORARY BREAKTHROUGH FOR POLS
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October 10, 2013

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Enthusiasm and a substantial short squeeze broke out in markets globally as warring politicians agreed to talks. The only thing we know as a result is there might be a six week “kick the can” debt ceiling window. And, even if that’s correct we’ll be revisiting this issue then. Like the Yahoo/Finance headline read: “Stocks Surge As Republicans Offer Plan to Postpone U.S. Default” So it’s just temporary then?

Nevertheless any move toward compromise was welcome news for stock bulls since their only concern is more liquidity and less stress.

Jobless Claims data is still screwed up with computer glitches still affecting California. Claims jumped by 66K to 374K vs 308K previous. This may just be the repeat of the “bad news is good” theme meaning more QE.

Stocks jumped 2% and more as the DC thaw allowed for large gains throughout market sectors in the U.S. and globally. There’s little sense in listing all the gainers as some are featured in charts below. Losers included gold (GLD) and bonds (TLT).

Volume was high given recent levels of activity and breadth per the WSJ was a positive 90/10 day on share volume.

6-7-2013 10-30-59 AM Insert ad revised 6.7 color

 10-10-2013 6-07-35 PM diary

Charts of the Day
  • SPY 5 MINUTE

    SPY 5 MINUTE

  • SPY DAILY

    SPY DAILY

  • .SPX WEEKLY

    .SPX WEEKLY

  • INDU WEEKLY

    INDU WEEKLY

  • RUT WEEKLY

    RUT WEEKLY

  • QQQ WEEKLY

    QQQ WEEKLY

  • RSP WEEKLY

    RSP WEEKLY

  • XLF WEEKLY

    XLF WEEKLY

  • XLY WEEKLY

    XLY WEEKLY

  • VBR WEEKLY

    VBR WEEKLY

  • VNQ WEEKLY

    VNQ WEEKLY

  • ITB WEEKLY

    ITB WEEKLY

  • XLU WEEKLY

    XLU WEEKLY

  • IBB WEEKLY

    IBB WEEKLY

  • IYT WEEKLY

    IYT WEEKLY

  • IEF WEEKLY

    IEF WEEKLY

  • HYG WEEKLY

    HYG WEEKLY

  • TIP WEEKLY

    TIP WEEKLY

  • UUP WEEKLY

    UUP WEEKLY

  • FXE WEEKLY

    FXE WEEKLY

  • FXY WEEKLY

    FXY WEEKLY

  • GLD WEEKLY

    GLD WEEKLY

  • GDX WEEKLY

    GDX WEEKLY

  • SLV WEEKLY

    SLV WEEKLY

  • JJC WEEKLY

    JJC WEEKLY

  • GCC WEEKLY

    GCC WEEKLY

  • VEA WEEKLY

    VEA WEEKLY

  • IEV WEEKLY

    IEV WEEKLY

  • VWO WEEKLY

    VWO WEEKLY

  • AAXJ WEEKLY

    AAXJ WEEKLY

  • GXG WEEKLY

    GXG WEEKLY

  • ILF WEEKLY

    ILF WEEKLY

  • EWY WEEKLY

    EWY WEEKLY

  • FXI WEEKLY

    FXI WEEKLY

  • EPI WEEKLY

    EPI WEEKLY

  • NYMO

    NYMO

    The NYMO is a market breadth indicator that is based on the difference between the number of advancing and declining issues on the NYSE. When readings are +60/-60 markets are extended short-term.


     

  • NYSI

    NYSI

    The McClellan Summation Index is a long-term version of the McClellan Oscillator. It is a market breadth indicator, and interpretation is similar to that of the McClellan Oscillator, except that it is more suited to major trends. I believe readings of +1000/-1000 reveal markets as much extended.

  • VIX

    VIX

    The VIX is a widely used measure of market risk and is often referred to as the "investor fear gauge". Our own interpretation is highlighted in the chart above. The VIX measures the level of put option activity over a 30-day period. Greater buying of put options (protection) causes the index to rise.

...

 

Remember in 2011 when we had a debt ceiling crisis markets fell and rose weekly for several months. Now we’ve just postponed things until early to mid-November. Then these tensions will reappear quickly one would assume.

The way ObamaCare is going now it needs to be fixed anyway or it will die of its own weight. I think he knows this.

Let’s see what happens.

 

Disclaimer: The charts and comments are only the author’s view of market activity and aren’t recommendations to buy or sell any security. Market sectors and related ETFs 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 annotations 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.



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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

 

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