In case you missed it, here’s a summary of the ETF topics and market reviews I posted to my blog during the week ending on 10/21/2012.
Despite a very bullish start this past Monday, reality in form of poor economic data points and earnings disappointments by major players in the tech industry combined to knock the indexes off their lofty levels.
Despite Friday’s sharp pullback, the S&P 500 managed to salvage the week by ending up with a meager gain of 4 points.
With the indexes closing near their lows, more downside momentum is a distinct possibility, especially if the earnings parade does not live up to the already severely lowered expectations.
As I have repeatedly pounced on, the ‘disconnect’ of current market levels to underlying fundamentals is simply not sustainable in the long run. Whether this will be the day in the sun for the bears, is too early to tell, but we are prepared to take protective action, should this pullback turn into something worse.
Over past week, we covered the following: