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Well, the S&P 500 is the laggard in making new, historic highs by only about 1%. Lots of volatility leading in to recent gains and now … quiet as a mouse. I would expect the S&P 500 to eclipse previous highs soon. Then, it’s really anyone’s guess. I would like to see a new S&P 500 high then a good pullback as the air is getting a bit thin. But, what I would like to see and what really happens does not always match up. Kind of like my golf game. Which is why we’re prepared for whatever direction the market takes.
ETF Buying Opportunities
I’m expanding the equity products I track to include the top ETFs by volume. Premium Members will have exclusive access to this service in the future. Let’s look for some trading opportunities …
iShares China Large-Cap (FXI) – weekly chart
FXI is the ETF for China. I’m getting interested in buying soon. I’m hoping it trades down a bit first. Looks like a week or two before a buy signal could be generated.
PowerShares QQQ Trust (QQQ) – weekly chart
QQQ is the ETF for Nasdaq 100. A buy signal has been generated by the Smart Chart Investor model as of Wednesday, 3-13-13.
iShares MSCI Emerging Markets (EEM) – weekly chart
EEM is the ETF for emerging markets. I’m looking forward to buying around $41.50 soon.
SPDR Gold Shares (GLD) – weekly chart
GLD is the ETF for gold. If we can get a bounce around $148.50, that could be a good entry with risk below $140.
SPDR Select Sector – Energy (XLE) – weekly chart
XLE is the ETF for crude oil, natural gas and drilling companies. I’m looking for about a 4% pullback before buying.
iShares US Real Estate (IYR) – weekly chart
IYR is the ETF for real estate stocks and trusts, currently trading at $68.86. A good entry would be $66.00 if it happens soon.
iShares MSCI Japan (EWJ) – weekly chart
EWJ is the ETF for Japan. I’m starting to get interested but time will tell. Not too much time though. I know … Japan?? Kind of like buying Greek bonds a year ago. Who knew?
Country and sector ETFs are traded just like equities. You can buy $100,000 for about $7.00. That’s a huge difference than buying a load mutual fund or even a no-load fund. And, don’t forget, most mutual funds don’t have the ability to go to “cash” as their mandate is typically to be 95% invested per their “style”.
I will be suggesting long term buy and sell signals for the largest ETFs with an emphasis on protection and riding gains. What I do is much different than what most advisors do or what mutual fund managers do. I specialize in selling to either limit losses or capture gains. It’s only when you understand selling and the implications of selling that you can effectively buy. Who do you know that specializes in selling? I would bet no one. Why is that? Selling is the most important aspect of successful equity investing.