Category Archives: ETFs

Is High Yield Telling Us Something?

By -

The Dow Transports hit a lifetime high today (see, that little sell-off that happened earlier this month – – didn’t mean a thing). The NASDAQ is near its highest level since the Internet bubble. The VIX has lost over half its value in just a couple of weeks.

But in spite of all this, the high-yield market seems to have stalled out. Yes, it had a big bounce from October 15th, just like everything else, but it doesn’t seem as, shall we say, irrationally exuberant as everything else. (more…)

From Resistance to Support

By -

After the explosive eight-day surge in the markets (following the bottom last Wednesday), a whole cache of ultrashort ETF charts looks very interesting on the long side. Below are just a couple of examples, and take note how cleanly resistance has magically changed into support. Next week, particularly Wednesday’s FOMC announcement, will clarify whether these “long” positions (although actually short the market) are as profitable as they might appear.

1024-TWM (more…)

The Return of FAZ

By -

So many ultrashort funds have turned the corner to the upside, it’s really quite surprising. One in particular is the triple-bearish-on-financials fund, shown below. It is exhibiting the same kind of pattern shared by so many other short funds: an emergence above a descending trendline that goes back for a long, long time. I’d certainly wait for prices to relax back down to the trendline, but before too long, these might be fantastic long positions.

1013-faz

Waxless Brazilian

By -

I haven’t been following the elections down in Brazil, but apparently people are ga-ga about Brazilian stocks today. Excellent! You want to know why? Well, I’ll tell you: I thought it might take weeks to repair the damage done to Brazilian stocks, and I was worried that the slow uplift in those stocks would goose up our markets as well. Happily, the entire surge took place within minutes of the opening bell, and I’m ready to terrorize our South American neighbors once again. I am shorting with impunity.

1006-ewz