Despite the rebound of the past 2 days, we’re still down about -1.34% from last week as measured by the S&P 500. This continued slippage is reflected in the Cutline report, as there are currently only 13 ETFs positioned on the bullish side, while 76 still hover below the line and in bear territory.
To repeat, the High Volume ETF Cutline report includes all ETFs above and below the cutline (trend line). To clarify, High Volume (HV) ETFs are defined as those with an average daily volume of $10 million or higher.
These ETFs are generated from my selected list of some 90 that I use in my advisor practice. It cuts out the “noise,” which simply means it eliminates those ETFs that I would never buy because of their volume limitations.
Take a look at the most recent table:
http://www.successful-investment.com/SSTables/HVETFCutline08242011.pdf
The same candidates that have been populating the top of the ranking food chain for some time now still hover in top positions. Despite its sharp pullback of the past couple of days, GLD remains in the top spot, followed by TLT and FXF.
As the S&P 500 got clobbered over the past few weeks, SH has rallied strongly. Again, my preference is not to be outright short during a bear market, but to be hedged, which is what I use SH for.
Again, looking at the big picture, the bears still have the upper hand, and I would stay away from making any new equity ETF purchases until this current slide not only hits support and manages to establish a bottom but also shows upward momentum.
If you are a new reader and missed the original Cutline report, which also featured some “how to use” information, please review it here.
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Disclosure: Holdings in GLD, TLT, FXF, SH
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