Saturday, January 24, 2009

ETF Rewind - Week 4 (01/23/09)

Table Graphic Fixed!
(Click Image to Enlarge/ Glossary)

The holiday-shortened inaugural trading week brought us yet another downleg into the depths of the multi-month trading range on renewed banking fears, leaving the S&P 500 (SPY) down an added -1.5%, while Precious Metals (DBP) catapulted +10.6% higher.

After nationalization threats for England's banks (Guardian - Too Late for England's Banks?), the US Financial Sector (XLF) fell another -9.9%. However, for the first time in a while, we saw a divergence among the sectors with Energy (XLE +1.9%), Utilities (XLU +1.5%), Healthcare (XLV +0.9%), and Technology (XLK +0.3%) all finishing modestly higher. Large-cap Value stocks also moved up on the week (PWV +0.7%) in spite of the difficulties in the financial group. Lastly, note in the chart below how, despite the downward price movement, short-term RSIs attempted to register a mild bullish divergence.

Week Five of 2009 features the following busy reporting calendars, including an Federal Open Market Committee meeting within the increasingly heavy earnings season:

Traders next week will undoubtedly deconstruct the language of the FOMC policy statement as they continue to track the progress of the proposed follow-on stimulus bill (Reuters - $825B Bill Progresses) and new Obama administration proclamations (Bloomberg - Obama Signals Bank Restrictions). The rioting over the failure of the Icelandic banks and government will also be watched, mostly as a curiosity at this point (Mail - Icelandic Government Brought Down), even as the third US bank failure of the new year is announced (Bloomberg - First Centennial Shut).

This continues to be a very volatile, news driven environment -- trade accordingly, and... enjoy your weekend!

Never Investment Advice


Anonymous said...

Jeff, the weekly report table does not enlarge.

vivek said...

Can't seem to see the enlarged version of the ETF summary image. Not sure why?

Jeff Pietsch CFA Esq said...

Fixed, thanks for the heads up gang!