Sunday, February 21, 2010

ETF Rewind - Week 7 (2/19/10)

(Click Image to Enlarge/ ETF Rewind Glossary)

Markets continued their corrective recovery with the S&P 500 (SPY) finishing the week higher by another +2.8%. However, while last week we intimated it might be premature to act on overbought readings, this week they are fairly screaming for a minimal pause in the rise.  In addition, momentum slowed to the extent of divergence on Friday in spite of the impressive reversal from the surprise Federal Reserve discount rate increase.

That said, more broadly speaking last week's strength was just the type of action needed to lessen fears of a third leg down beyond mere correction levels.  In fact, two of our three simple rotation models put the risk trade back on, legging back into into the NASDAQ 100 (QQQQ) (though I might consider belaying that for a short while based on current overbought readings).

Week Eight of 2010 features the following reporting calendars and rotation model selections:
Lastly, don't forget that with Chinese traders back from vacation and Greece seeking to place a large debt offering, overseas news will be back in the limelight.  Have a terrific weekend!

If you are interested in a significantly more thorough version of this weekly summary, consider taking a look at Market Rewind's nightly ETF Rewind Pro service. In addition to coverage of nearly 200 ETFs across twelve major asset classes, you will find three model portfolios, daily market signals and commentary, pairs trading and various powerful portfolio management tools.

Never Investment Advice: Prior Weekly Summaries: ETF Rotation Models

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