ETFs On The Cutline – Updated through 4/29/2011

Ulli ETFs on the Cutline 2 Comments

With equities gaining strongly last week to close out the month, surprising moves to the upside happened around the cutline (trend line) as well.

The Clean Energy ETF (PWB) rallied from a +2 position to +16 solidifying its rank on the bullish side. However, its momentum figures (see table) are still on the weak side.

The same applies to the Nanotechnology ETF (PXN), which came from a -7 position and crossed the cutline to settle at +11.

One of the more solid and steady advances, which has been apparent over the past couple of weeks, was PFF, which climbed from +3 to a +10 position. With all momentum figures being positive and a DD% of 0.00, this should be worthy of your attention if you are looking to deploy new money.

The Japan ETF (EWJ) made a big move from -18 to +9, but its momentum figures are still too negative. However, the largest advance of the week came from the biggest loser of the past few years. You won’t believe the rebound this ETF has made.

Of course, I am talking about the U.S. Natural Gas Fund (UNG), which I have featured on several occasions. This past week, UNG raced from dead last place through the cutline to finish at +13, which is +1.71% above its trend line. Momentum numbers are positive, but it is still -62.03% off its high.

If you are the aggressive type, and you are looking for an ETF that has made a potential turnaround after 2 years of slipping and sliding, this would be it.

Take a look at this week’s table:

[click on table to enlarge]

For better viewing and printing, download the PDF:

Again, UNG has rebounded sharply, but there is no assurance that this upward momentum will continue. If you decide to take a chance, be sure to use my recommended sell stop discipline, which calls for a 10% trailing stop loss when used with sector ETFs.

For quick reference:

ETF Cutline Post as of 4/21/2011

ETF Cutline Post as of 4/15/2011

ETF Cutline Post as of 4/8/2011

Disclosure: No holdings in the ETFs discussed

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Comments 2

  1. Ulli,
    Really appreciate the additional info you provide. I have been using your master list for quite a while and the cutline analysis adds a new dimension to finding new candidates. Would it be possible to add a prior week ranking beside the current week ranking to make it even better?

  2. Bill,

    That has been requested before and would be a great addition. Unfortunately, there is just not enough room to make it fit on the page, unless something else gets deleted.


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