ETF Focus: Sectors

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Below are five ETFs related to specific sectors which I found interesting.

First up is our old friend IYR, which is the real estate fund. I spilled much digital ink about how much I regretted dumping my puts on this around August 4, only to see them go up about seven-fold. This has surged recently (like everything else), and Friday I re-entered this position, determined to hold firm this time. Perhaps I’ll get a second bite at this apple. Take note how big the top is.

I think of RNeo when I see this chart, because he’s quite fixated on the $SOX (semiconductor index) these days. We perfectly tagged the downtrend on Friday. Unless this thing goes ripping higher on Monday, I think an immediate reversal could be at hand here, considering the amount of overhead supply.

Bonds have been in one of the worst bear markets in financial history for years at this point. I haven’t traded this stuff in a long time, but looking at this chart, I think any ascent from TLT will be just gasping for air, since the fundamental reasons for the demise of bonds are so large.

This idea is accentuated by what’s going on with the banks, which have been range-bound for many months and are once again at the top of their range and beneath (once again) a large area of overhead supply. In short, we’re back to exactly where we were at the peak of August 16th.

Finally, the Consumer Staples have respected their price gap (to which that horizontal line is anchored), which could make for a pretty clean trade.