The master ETF list here at TrendInvestorPro has 200 ETFs from every corner of the market: stocks, bonds, commodities, currencies, foreign indexes and a few odd balls. They, and I do mean the infamous “they”, say that there is always a bull market somewhere.
In general, I am not a fan of price targets or projections because they are very subjective. Instead, I prefer to identify the trend in a systematic and objective manner, and then trade or invest accordingly until proven otherwise. The index and sector breadth models turned bearish at the end of February and
The market is oversold, but we do not need an indicator to figure that one out. There is one HUGE problem with oversold conditions right now. Yep, you guessed it. We are in a bear market. Oversold conditions alert us to possible setups in bull market environments, but not in bear market environments.
Only three of the sixty ETFs in the core list advanced this week: AGG, TLT and LQD (bonds). Everything else declined, but the biotech ETFs (IBB and XBI) declined the least of the common stock ETFs. The banking and insurance ETFs (KRE, KBE, KIE) led the way lower with the banking ETFs hitting 52-week lows.
Stocks were broad-sided as the stock market fell sharply. Even though the S&P 500 SPDR remains in the falling knife category and has yet to bounce, I am on the look out for ETFs that hold up relatively well during this onslaught. There are several ways to separate ETFs with relatively strong charts and those with relatively weak charts.
Weekend Video, Chart Notes and ChartBook Update ETF Chart Notes for Saturday, February 22nd * These chart notes are also in the ChartBook PDF file (link above) New 52-week Highs (during the week – unadjusted data) Major Index ETFs: SPY, RSP, MDY, QQQ, MTUM, USMV Sector SPDRs: XLK, XLY, XLC, XLP, XLU, XLRE Equal-Weight Sectors: …