ETF Update: Midcap Move
In addition to taking a couple of days off, I have had some computer problems.
It is a day late for our regular ETF update, but I will post the basics for our ratings below. Those interested in a more complete description of our methodology can check any of our prior updates.
When I finish the upgrade to Windows 7 — the Vista experience was not good — I'll devote an article to the transition.
Meanwhile, here are the ratings from last Thursday at the close. Those who subscribe to our weekly reports received timely updates, but I apologize for missing yesterday online.
Summary
The index package is still bearish on the market, but we are slightly long with specific sectors. If I had written a full post, I would have emphasized the move in the midcaps and small caps. That may still be the theme for next week.
This is really just a service for those who have interest in the updates, but are not subscribing to the email list (etf at newarc dot com). Sign up there for a weekend email with the ratings.
Dear Jeff,
Talking about computer problems, please change Windows for Mac, and you’ll never have this kind of problems agian.
Congratulation for your superior work.
Best regards
Walter Mundell
The Fed’s monetization of the banks through TARP, Dollar Swaps, other Federal Reserve facilities, and committment to the debt of Fannie Mae and Freddie Mac, has inflated debt, stocks, oil and gold. A “debt carry trade”; that is a swapping out of US Treasuries for toxic mortgage and other debts, has liquified the global financial markets, much as the “yen carry trade” of days past, where investors sold yen and invested in high yielding currencies and in emerging nations for fantastic gain.
The greatest gain over the last year, since the Fed began its “recovery operations”, has been in the following ETFs: QTEC, XHB, XRT, SLX, XME, and the Brazil ETF, BRF, as can be seen in the following Yahoo Finance Chart: http://tinyurl.com/y8gptmu
Look for a market turn at any time … a break could come from any reason. I strongly encourage one to own the gold ETF, GLD, in a trust account — not a brokerage account,