This is probably one of my last days in publishing Dave’s Daily.

What do you mean “probably”?

I may continue to blog now and again. But again, nothing is certain. What is certain: I will be dealing less with premium membership and trading activity going forward. And I’ve been this for over 40 years, sigh.

Perhaps more book writing is on the agenda.  

For many months, nay years, the ongoing “bad news is good” theme has been with us. It’s getting tiresome.

So it is for me. Friday was an end of month classic.

The GDP Report was released and was surprisingly weak at only 1.2% vs 2.5% expected. Who or which sector to blame this time? Pick one. Business Investment fell 2.2%, it’s 3 quarterly decline Gross Private Domestic Investment lost 9.7% and Residential Investment fell 6.1%. It’s not a pretty picture.  

As early trading saw stocks decline sharply they suddenly reversed. This was caused as traders thought bad economic data meant a weak dollar causing a reversal in commodities. This as early news featured a large build in Saudi oil production. The bottom line, bond prices rose causing many to think the Fed couldn’t raise interest rates given economic weakness meaning bulls were given a greenlight to go for it.

Most of the action Friday that was positive was in emerging markets, Europe and commodities. Beyond that, the usual suspects delivered except for Financials where results disappointed.

Below is the heat map from Finviz reflecting those ETF market sectors moving higher (green) and falling (red). Dependent on the day (green) may mean leveraged inverse or leveraged short (red).

Volume was anemic and breadth per the WSJ was positive.

Chart Of The Day

Well, it’s been a lots of fun and we’ll see you when we do.

Let’s see what happens.