Wednesday's Biggest ETF
Winners And Losers
Trang Ho, INVESTOR'S BUSINESS
Posted 05/30/2012 02:46 PM ET
flocked to safety in the greenback and bonds as global
markets resumed selling off Wednesday.
dollar, as tracked by the PowerShares DB US
Dollar Index Bullish (UUP),
flew 0.56% to a 16-month high, while the euro skidded
to a two-year low amid ongoing eurozone debt woes. China
doesn't feel it needs to inject massive stimulus to
stabilize growth and calm investor fears about global
financial crisis, Reuters reported policy advisers as
soared to their highest levels of the year as 10-year
bond yields fell 11 basis points — or 0.11% — to 1.52%,
a 60-year low. Prices and yields move in opposite directions.
Extended Duration Treasury Index ETF (EDV)
and Pimco 25+ Year Zero Coupon U.S. Treasury
Index ETF (ZROZ)
both vaulted 4% to outperform all nonleveraged ETFs.
are extremely overbought and may have topped, says Tom
McClellan of the McClellan Market Report.
that condition of having topped does not necessarily
mean that prices have to go down right away," he
wrote in his daily newsletter. Based on his timing indicators,
he believes bonds will fall as the stock market rallies
Pure Beta Nickel ETN (NINI)
and iPath Pure Beta Cotton ETN (CTNN)
led the sell-off in commodities, crashing about 10%
each. IPath Pure Beta Cocoa ETN (CHOC)
have been in a bear market since last spring and have
fallen more than 30% from their March 2011 peak. They
may bottom in between June and July, forecasts Shawn
Hackett, president of Hackett Financial Advisors in
Boynton Beach, Fla.
that low is in place, commodities can get a bounce.
Cotton fundamentals remain dreadful, so any bounce there
would be short lived," he said. "Cocoa has
very bullish fundamentals, so a rally there would be
S&P 500 (SPY) plunged
1.4% Wednesday. Energy stocks, which are heavily dependent
on economic growth, led the sell-off.
Dow Jones Industrial Average (DIA)
QQQ (QQQ), a basket
of the largest 100 nonfinancial stocks on the Nasdaq,
S&P 500 found support at 130 on May 17. It could
rally in the short term as investor sentiment — a contrarian
indicator — hit its lowest level since October 2011,
according to Simon Maierhofer of ETFGuide.com.
word of caution: If stocks can't stage a rally from
current prices or the 1333-1340 range on the S&P
500 ($133 to $134/share for SPY) despite such bearish
sentiment, they have a propensity to fall hard,"
Maierhofer wrote in his June newsletter. "A drop
below 1330 for the S&P ($133.00 for SPY) will be
a signal to go short with a stop-loss just above."
MSCI EAFE Index (EFA),
tracking developed foreign markets, and IShares
MSCI Emerging Markets Index (EEM)
both gapped down 2%.