Stock Market Summary: Get Back Where You Belong

As in, “get back where you belong!” If you were ever in military service, especially many years ago, you had the delightful Sgt. Hartman experience. But, you can’t shake the dude since he’s now doing business as Mr. Market and he’s as mean as ever, just ask Merrill Lynch!

Volume was lighter than average but let’s remember it’s a Monday in the middle of summer. [Pssst! I think Yahoo/Finance actually has the numbers right today. Perhaps our undercover agents have finally helped them see the light!]

Meanwhile we’ll revisit the ICU and see how the problem patients are doing. By the way, Paulson has introduced some new packaging products for the mortgage market that he hopes will kick-start the process as outlined HERE. No one will ever be able to say that Paulson and Bernanke haven’t tried hard but they’ve been dealt a bad hand. You can repackage this mortgage stuff and put a pretty bow on it but it will still be _____.

Other US market sectors are as follow selectively.

A lighter than average volume day in the middle of summer is not unusual. There continues to be serious problems in financials. The Russians stated they were dumping FNM and FRE. Further, the action on the tape for MER and others was particularly disturbing since it might herald a very serious problem with another shoe[s] to drop.

It’s the end of July this week and Friday we get employment data. The former could cause some tape painting by bulls while the latter will create fireworks one way or another.

Have a pleasant evening.

Disclaimer: Among other issues the ETF Digest maintains long or short positions in: MZZ, IWM, TWM, QQQQ, QID, SMN, IEF, PST, IEF, PST, DBC, DEE, USO, XLE, EFA, EFU, EEM, EEV, EWJ, EWV, EWZ and RSX.

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