Following the theme of continued flight to safety, this week’s ETF Cutline report confirms what the Leaders and Laggards table showed last Saturday: Precious metals and bonds of all durations reign supreme as we slipped further into bear market territory.
Only 39 ETFs are positioned above the cutline, while 353 hover below it. No equity ETFs are showing positive momentum figures; even the always reliable Consumer Staples (XLP) have dropped to the -8 spot.
If bonds are of interest to you, take a look above the cutline as there are several candidates that deserve further consideration. Be sure to drop down a few notches from the top listing, since some bond ETFs have crossed their trend lines to the upside by a significant margin.
Here’s the latest report:
[If you are not familiar with some of the terminology used, please see the Glossary of Terms.]
As I have said before, this is not the time to be a hero and engage in bottom fishing below the cutline, as the trends clearly point down. Right now, you need to step back and let this situation play out until better opportunities present themselves.