ETF Wrap-Up: US Housing Starts “Worse Than Expected”

You know, sometimes bad news is really just what it seems no matter how some spin it. Housing Starts were “worse than expected” and GS Same Store Sales were also “less than expected”. That’s not bottom-type news bulls were hoping for but let’s give them credit for keeping the damage to a minimum.

Volume remains light and breadth was positive-mostly on the NASDAQ.

A quiet day but Hewlett Packard (HPQ) reported less than expected results tonight and it will be interesting to see how that is spun. Bulls will try to find another piece of news to trump and ignore it.

It’s interesting that now the Fed is ready to back up municipal bond issues through a joint venture by creating another bond insurance company with the National League of Cities. Why stop when you’re already have way down the river?

S&P PEs are now at 122.45 based on reported trailing earnings. The financial media likes to report operating earnings versus those based on GAAP (Generally Accepted Accounting Principles). If you used S&P’s own projection for 2010 of $35 then PEs are only (gulp) at 24.75. Hardly “cheap” as you so often hear in the financial media.

In a final note, how about seeing a story about SEC attorneys being investigated for insider trading? That’s a doozie!

Let’s see what happens.

Disclaimer: Among other issues the ETF Digest maintains positions in: IEF, TLT, TBT, UDN, DBV, DBC, and UNG.

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