Tuesday, May 25, 2010

ETF Update from Tuesday Evening Close

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In my earlier post this evening I stated that I would not have stock data before tomorrow.  This much is true -- I don't have STOCK data, but I have ETF data as of 10:18 pm.

Today's (Tuesday's) ETF data shows that the ETF Long-Cash Ratio, while different from the stock LCR, dropped in 0.2%, e.g., even with the internal run-up this afternoon, most of the ETFs I track (over 900) ended in somewhat worse condition today than they were yesterday.

I'm expecting to see this in the stock data, but I won't know until the morning.

The implication of the ETF data is that we are too early on determining whether today signals a reversal, hence, I will NOT be jumping in at 9:30 with longs tomorrow.

Of course, if the stock data shows otherwise, I'll retract my statement.  Right now I'm not convinced that we need to be thinking about going long.

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Remember, you are responsible for your own trading decisions, not me.  Please do your homework.

Regards,

pgd