Precision Drilling Trust (PDS)

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Saturday, February 28, 2009


Monday

In last week's newsworthy section, I used a clip from Briefing.com that discussed the outflows from equity mutual funds. Well on Friday, I saw the numbers through February 18. According to TrimTabs Investment Research, the outflows from February 11 to February 18 were $10.7 billion. They also reported outflows in U.S. equity based ETFs of $6.9 billion.

Is it any wonder the market went down last week? A total of $17.6 billion flowing out of mutual funds and ETFs in one week creates a lot of selling pressure.

So where do we go from here? The 7,200 level on the Dow is absolutely critical. It is that line on the edge of the cliff that Bugs has drawn. The market is being played by Yosemite Sam and he is edging towards that line. A step over that line and it is a drop of another 3,200 feet (points that is) down to the next layer of support.