Gold ETFs Rally Into Record Territory

Ulli Gold ETFs Contact

Just last Sunday, I posed the question “Do Gold ETFs Still Have Legs?” Yesterday, it was answered—at least for the time being, as gold ETFs rallied into record territory.

While the equity markets went nowhere, precious metals had their day in the sun. My view has always been that known and unknown uncertainties will surface all of a sudden causing metals to react to the upside.

Yesterday was no exception; a variety of events kept a lid on any equity advances, while gold simply took off as the 1-day chart of GLD above shows.

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Revisiting ETNs

Ulli Uncategorized Contact

Exchange Traded Notes (ETNs) have been on the market since 2006, but many investors have shied away from them for various reasons.

Let’s revisit the idea of ETNs by taking a look at “ETNs Are Back, Warts And All:”

Exchange-traded notes are back, even as investors still worry about the risks that caused a stampede from these vehicles during the financial crisis.

ETNs, which resemble their more widely known cousin, exchange-traded funds, help investors bet on exotic investment themes like energy partnerships and interest-rate patterns. They have proved a recent hit, with assets topping $15 billion. That’s a big change from two and a half years ago, when ETNs held less than $4 billion and appeared to be shrinking fast.

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ETFs On The Cutline—Never Miss Another Buy Signal!

Ulli ETFs on the Cutline Contact

One of the most important aspects of trend tracking, or investing in ETFs in general, is to establish a position at the appropriate time.

Timing is everything not only in life but especially in the world of investing. If you have been reading this blog for a while and are following trends in the market place, you know that the crossing of a trend line to the upside, and into bullish territory, for any given ETF/mutual fund, represents the most appropriate moment to get into the market.

To be clear, just because a trend line crossing has occurred, it is by no means a guarantee that upward momentum will continue. However, your chances are greatly enhanced, and I believe the odds have increased in your favor, that a sentiment change from bearish to bullish has occurred. In other words, the trend line crossing is the proverbial line in the sand that divides bullish from bearish territory.

With some 500 ETFs in the ETF Master list of my data base, how can you track these constantly changing events quickly and effectively?

In the past you couldn’t but as of today, you can.

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Sunday Musings: Do Gold ETFs Still Have Legs?

Ulli Gold ETFs Contact

That was the question which was recently discussed in an article titled ”For Gold Prices, Is the Bull Run Over?” Let’s look at some highlights:

After a decade-long bull run in the price of gold, the bears are beginning to come out of hibernation.

That may seem hard to believe after the recent run up in gold’s price. With conflict rising in Libya and the crisis still brewing in Japan, the price of gold rose to $1,428 an ounce, up an astonishing 28.8% in the last year. A decade ago, gold was selling for just $268.

“While we do expect inflation to remain a concern, investors who are focused on gold will likely start taking profits and move their money into riskier assets such as equities, which have performed really well in this market,” says Brian Bueno, an analyst at research firm IBISWorld, which has just published a report entitled, “Gold’s Long Bull Run Is Set to Turn Bear.”

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Reader Question: Bond ETFs And M-Index Rankings

Ulli Bond ETFs Contact

Reader Chris had an interesting observation about Bond ETFs and their lack of showing a certain dynamic in the rankings. Here’s what he had to say:

I am getting used to the new format of your blog and really like the two new postings you are going to publish.

I look at your postings practically daily and have passed them on to as many people as I talk to about investments.

The one thing that eludes me while poring over your figures is the value of interest and dividends that an issue may throw off.

I have an approx. $100K position in JNK and find it extremely rewarding. Yet, in your rankings it does not look very dynamic at all.

I guess, from a trend perspective, you don’t want a bond fund to fluctuate. But the value of such an issue is not really clear in your data.

Am I correct in this, or am I missing something?

No, you are not missing anything and are absolutely correct.

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ETF/No Load Fund Tracker updated through 3/31/2011

Ulli ETF Tracker Contact

ETF/No Load Fund Tracker StatSheet

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THE LINK TO OUR CURRENT ETF/MUTUAL FUND STATSHEET IS:

https://theetfbully.com/2011/03/weekly-statsheet-for-the-etfno-load-fund-tracker-2/

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Market Commentary

Friday, April 1, 2011

ETFs RALLY INTO APRIL

Even though the major market ETFs closed out the month of March on a whimper, upward momentum shifted into high gear early in the morning of April 1st.

Providing the ammunition for this up move were the widely anticipated unemployment numbers, which came in better than expected. The Labor Department reported that the unemployment rate fell to 8.8% in March, while payroll employment increased by 216,000.

While that is a decent number, it’s finally a move in the right direction provided this tendency remains. However, what was not said is just as important. While investors cheered the report, below the surface lurk some potential troubles.

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