Sunday, May 16, 2010

ETF Rewind - Week 19 (5/14/10)


(Click Image to Enlarge/ ETF Rewind Glossary)

Traders may have finished the week feeling forlorn after Friday's repeat bear performance in spite of an otherwise admirable recovery off of the prior week's significant pullback. In fact, the S&P 500 (SPY) and Russell 2000 (IWM) finished higher a full +2.4% and +6.4%, respectively.

Meanwhile, commodities are beginning to look as oversold as the US Dollar is overbought. Unfortunately for the bulls, we cannot also say equities are as oversold, with volatility looking well entrenched for the time being.

Indeed, emerging fundamental worries critically aside, a real cause for technical concern is the major deterioration of five of our tracked equity indices, which are now well below their respective 10-month/200-day moving averages (namely the Internationals - EFA/EEM, Materials - XLB, Energy -XLE, and Healthcare - XLV). The last time this occurred ended up being a false alarm -- will this one as well? I have to grant that this go does feel qualitatively different.

Week Twenty of 2010 features the following economic and reporting calendars:
I hope you had 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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