Momentum is not heading in the right direction, if you are looking for opportunities on the long side using equity ETFs.
Since last week’s report, the S&P 500 has given back -0.83%, but the number of ETFs positioned above the line and therefore in bullish territory has been reduced to only 7. It includes the same old performers we have been seeing on top of the list for some time.
This tells me that, despite the various rebound attempts, weakness prevails in the equity arena. I would consider the current market environment to be a traders market and not one for long term investors due to its extreme volatile nature. A long term trend in either direction can simply not yet be identified without wild guesswork.
To repeat, the High Volume ETF Cutline report includes all ETFs above and below the cutline (trend line). To clarify, High Volume (HV) ETFs are defined as those with an average daily volume of $10 million or higher.
These ETFs are generated from my selected list of some 90 that I use in my advisor practice. It cuts out the “noise,” which simply means it eliminates those ETFs that I would never buy because of their volume limitations.
Take a look at the most recent table:
Please note that funds/ETFs represented with -100.00% means that current data was not available at the time I prepared the report.
I still believe it’s too early to make any new commitments, as it is uncertain whether the bulls will continue their current run, or if the time has come for the bears to again engage in some serious chest pounding.
If you are a new reader and missed the original Cutline report, which also featured some “how to use” information, please review it here.