U.S. markets remained choppy to finish the week, as the S&P 500 finished the day up slightly. This came after AIG reported an $8.9 billion loss for the quarter and the EU told Greece that its plan to cut spending and raise taxes was not going to be enough to satisfy other members of the currency bloc. However, Chicago PMI numbers increased again, and following hopeful statements from Britain and Japan, markets rose to finish the month in the green. While many investors have been forecasting a correction for sometime now, one has yet to materialize, largely due to conflicting data reports and uncertainty over the direction of the economy, a trend many expect to continue into March. “What will trigger (a true correction) is interest rates increasing. As long as we get cheap money it will be very difficult to hammer this market down,” says Matthew Tuttle, president of Tuttle Wealth Management. “Unless something really blows up on us, it will be tough to have a meaningful correction.”
The ETFdb 60 Index climbed 3.33 points, or 0.3%, to finish the week at 1,018.30.
Commodities rose across the board with iPath DJ-AIG Copper Total Return Sub-IndexSM ETN (JJC) leading the way. JJC finished up nearly 2% on the day, thanks in large part to the revised growth numbers and a weaker dollar, which combined to send most metals higher. “Demand for commodities is going to continue to be strong,” said William O’Neill, a partner at Logic Advisors. “The uptrend in copper will continue and we’ll see higher prices as we move through the year.” To see other reasons for why copper may be up so much as of late, see Three Reasons Why The Copper ETF Is Soaring.
Due to extremely flat trading, iPath S&P 500 VIX Short-Term Futures ETN (VXX) found itself as the day’s biggest loser in the ETFdb 60, finishing down 1.7%. Investors in VXX are hoping that March will offer better returns than the first two months of 2010 have: VXX is down 22% on the year.
Disclosure: No positions at time of writing.