ETF Musings

By -

With the Dow exploding 0.07% today, it doesn’t exactly make for electrifying market discussion, so I thought I’d share a few thoughts about some select ETFs. These happened to load in reverse alphabetical order, so here we go……..

Consumer Staples has been a pretty big point of frustration for me. Over the past couple of weeks, it’s been terribly strong, managing to reach its intermediate-term descending trendline. Frankly it needs to weaken, and fast, in order to maintain its bearish configuration.

slopechart_XLP

The Industrial Select sector is behaving itself much better. Even on a day like this, it continues to slip, and it’s got a spiffy little topping formation that’s complete.

slopechart_XLI

The Financials refuse to weaken, but its bull market is so terribly long in the tooth, I think its downturn is nearly inevitable. The powerful analog remains intact.

slopechart_XLF

Semiconductors continue to be a monster, and I’m not going anywhere near them.

slopechart_SMH

Real Estate remains surprisingly strong, and it’s pretty clear this bullish breakout has legs.

slopechart_IYR

The Russell 2000 is breaking down quite nicely, in sharp contrast to more popular indexes.

slopechart_IWM

The mass media is finally starting to focus the same attention on High Yield Bonds that I’ve been giving it for months now. There is some serious weakening happening here.

slopechart_HYG

Brazil had a bit of a bounce on Monday, but I think the damage is gone to that long-term trendline. This market is very vulnerable to continued weakness.

slopechart_EWZ

Lastly, the Ultra Dow – – which is the “double bullish” fund based on the Dow 30 – – quite plainly shows that prices remain much closer to long-term resistance (red line) than they do support (the green line, which is miles away).

slopechart_DDM

I’ll see you Tuesday morning.

Share this post: