Here is a quick ETF review of the past week’s winners and losers from my High Volume ETF Master list:
More downside momentum kicked in this week, as the markets closed out a bad month and the worst quarter since the 2008-09 meltdown.
New Leaders have emerged, but one look at the M-Index rankings shows that even a blind squirrel will find an acorn occasionally. Especially, Spain on top of the Leaders list is nothing more than a dead cat bounce. That goes for the other 4 positions as well.
On the Laggards side, the situation is even worse as the M-Index rankings verify. This short list is a good representation of all ETFs and no load funds as there is simply no upside consistency with any asset class. Bonds might be the exception.
The wild market swings of the past couple of months can be attributed to the casino mentality that has taken over global markets. News reports can turn yesterday’s Leader into today’s Laggard.
Until a clear new major trend can be established, stay in cash on the sidelines. While that is not what the army of Wall Street salesmen want you do, it’s not only smart, during times of uncertainty, caused by bear market sentiment, it will also let you sleep at night and keep you emotionally on an even keel.
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