Don Dion's Weekly ETF Winners and Losers

This week was very similar to the previous one, thanks to the Oct. 1 slide in the markets. The S&P 500 index lost 1.8% on the week. Disappointing manufacturing data was the focus of headlines, but the market was in bad shape.

The broader index peaked on Sept. 22, but that came after several days of trading produced a cumulative gain of less than 2%. Basically, the market was heading lower, and for whatever reason, investors weren't interested in buying on Thursday.

With that in mind, here are the winners and losers for the week:

Winners

ProShares UltraShort China(FXP) +8.6%

ProShares UltraShort Real Estate(SRS) +6.5% ProShares UltraShort Russell 2000(TWM) +5.8%

FXP and SRS made the list last week. This week I'm adding TWM. As I discussed on my RealMoney blog this week, I think the Russell 2000 may be the best way for bears to play this churning market.

iPath Crude Oil Total Return(OIL) +5.7%

PowerShares DB Oil(DBO) +4.1%

United States Oil(USO) +5.5%

Last week, oil prices plunged on much higher than expected inventories. This week, a decline in inventories touched off a sharp rally. The volatility in oil and big moves indicate there's either too much liquidity or not enough clarity.

Oil spent the better part of four months in a $15 trading range above $59 a barrel and below $74. Oil broke its uptrend, but it's moved only sideways since. It needs to make a decisive move above or below these levels to give a clear signal.

iShares Barclays 20+ Year Treasury(TLT) +1.3%

Treasuries were a safe haven once more, as TLT cracked the $100 level in morning trading on Friday, only to fall back by the close at $99 as interest rates rose. Treasuries appear stronger and, unlike many equities, their charts have been rising for the past few weeks.

Losers

Market Vectors Solar(KWT) -8.5%

Volatility is great on the upside, but it kills on the downside. KWT lost 6% in Thursday's selloff. Shares fell again on Friday, with one bright spot. First Solar(FSLR), 10.58% of assets, was up more than 4% after being added to the S&P 500.

iPath Natural Gas Total Return(GAZ) -3.7%

United States Natural Gas(UNG) -4.8%

The previous week, oil tanked on higher than expected inventories, while natural gas soared on lower than expected inventories. This past week, oil inventory was lower than expected and natural gas inventories hit an all-time high, beating out the October 2007 record.

Naturally, natural gas prices plunged.

iShares Dow Jones U.S. Home Construction(ITB) -6.9%

SPDR S&P Homebuilders(XHB) -4.5%

Pending home sales were much higher than expected, but investors were more concerned with manufacturing and unemployment. Housing had a very strong rebound, but that makes it more vulnerable during these corrective phases because the fundamentals haven't caught up to the price.

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