This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Step Away From the Foreign Currency ETFs

NEW YORK ( ETF Expert) -- Media outlets continue pressing the notion that new cash is entering the stock market from the sidelines. For the most part, this may be an accurate depiction.

Anecdotally, many of my risk-averse money management clients have asked me to move them up from "ultra-conservative" to "moderately conservative." Similarly, a number of traditional "moderates" are asking if now is the right time to become a bit more aggressive. In some cases, these clients are providing me with dollars from savings accounts that have not produced any growth or income.

With respect to actual price trends, stock market resilience has been remarkable. Buyers have been active on nearly every intra-day dip. Even in the face of info that normally frightens risk-takers (e.g., the election fiasco in Italy, China tightening up on property rules, the Federal Reserve becoming more leery of endless QE, U.S. government stalemate on the sequester, etc.), quick price recoveries pushed the mute button on one-day sell-offs.

While the activity may be a sign that stocks will not buckle when the Dow and/or the S&P 500 reclaim all-time highs, investors should still reassess the probability of a correction. Long-term Treasuries via iShares 20-Year Treasury (TLT) are back above a 50-day moving average. CBOE S&P 500 VIX Volatility (VIX) ) is also above a 50-day trendline. PowerShares S&P 500 Low Volatility (SPLV) continues to demonstrate greater relative strength when compared to the broader U.S. stock market.

Perhaps the most compelling sign that an increasingly defensive posture may soon change sentiment -- and by extension, market direction -- is the weakness in foreign currencies. For example, when investors back away from risk, they often run to the perceived safety of the the U.S. dollar. Indeed, over the last few weeks, PowerShares Dollar Bullish (UUP) has jumped dramatically. The exchange-traded fund tracker recently climbed above a long-term 200-day trendline.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $110.78 0.00%
FB $94.01 0.00%
GOOG $641.47 0.00%
TSLA $246.15 0.00%
YHOO $30.85 0.00%


Chart of I:DJI
DOW 16,776.43 +304.06 1.85%
S&P 500 1,987.05 +35.69 1.83%
NASDAQ 4,781.2640 +73.4890 1.56%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs