FNM, FRE, LEH & Putin is not a new securities firm but just the elements in a cloud that continues to hang over markets. Let’s face it, we’re just moving back and forth here. One week bulls seize the tape with declining commodity prices and a strengthening dollar then the next bears emerge and reverse everything. This is either trading range action on lighter summer volume or the start of a new down-leg in a bear market. It’s too soon to make the case either way.

Volume remains light especially on the NASDAQ while breadth was unremarkable.



































































































Commodities had sold off hard and were oversold. Firms like GS know this and are anxious to take advantage to catch investors leaning the wrong way. So they’ll take big long positions for their proprietary accounts and release the accompanying bullish report. Doing this in late summer with markets stretched and with light volume can make their month for their trading desks. Bully for them!

Equities look quite sick and seem as if nothing will happen trend-wise until some of the major negatives overhanging the markets are resolved. That means FRE/FNM/LEH coming to some final result.

Tensions with the Soviets remain high and no doubt the latter is willing to use energy as a weapon to crush dissent and threats of any kind from the West. So, gold prices rise along with everything else starting with a “C” while the emerging dollar rally may be snuffed-out.

One thing’s for sure, the week ends tomorrow. Enjoy your weekend.

Disclaimer: Among other issues the ETF Digest maintains long or short positions in: IWM, IVE, XLY, XLV, UGE, IEF, DBC, DEE, GLD, DZZ, UUP, EFA, EFU, EEM, EEV, and FXI