Category Archives: ETFs

Update on Fed Monetary Stimulus “Canaries”

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I last wrote about the Fed Monetary Stimulus Program “Canaries” in my post of February 6, 2013. As a reminder, I chose six of of them (ETFs) in order to determine their relative strength/weakness against their respective Stock Market Index, since they may have held clues for further accumulation of riskier assets due to respective Central Bank stimulus programs.

So that we can compare their current relative strength/weakness, I’ve provided the following 3-Year Daily ratio charts for each “Canary.”

XLF:SPX ~ U.S. Financials ETF has, basically, traded lock-step with the SPX since my last post. A recent breakout has brought price back to re-test this breakout level. We’ll need to see 0.0120 held if XLF is going to resume an outperformance of the SPX. (more…)

Never a Straighter Line

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We all crave a market that trends persistently. Over the past six years, with all the insane interventions going on around the world, it’s tough to secure a trend (particularly on the short side) that lasts more than a couple of trading sessions. But stand back, everyone, and take note of what commodities have done consistently for over FIVE MONTHS.

1213-DBC

One can only imagine the billions of dollars lost along the way by people trying to “buy the dip”. It does my heart good to see so many bulls getting blown up. At least there’s one segment of the global economy where bears dominate. God bless them.