This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

ETF Moves for Before the Crowd Gets Restless

NEW YORK (ETF Expert) -- Nobody can tell you when a 10% stock market pullback is imminent. That has not stopped many from issuing erroneous prognostications over the last 31 months.

By the same token, no individual can predict when a correction will morph into a 20% bearish sell-off. Yet, Marc Faber ("Dr. Doom") has routinely served up enormously frightful comments in a perpetually compliant media.

While it may be impossible to forecast with certainty, it is possible to increase one's chances of success. One can always avoid a big loss by taking a big gain, small gain or small loss. Another might employ fundamental analysis to buy traditionally undervalued assets and/or to sell traditionally overvalued assets. Still others might simply let long-standing moving averages (a.k.a. "trend lines") dictate when to participate and when to stand down.

I use a wide variety of data (e.g., economic, historical, contrarian, geopolitical, fundamental, technical, etc.) when making asset purchase decisions for money management clients. In the end, though, when the markets decide that I am wrong about a particular selection, I cut bait so I may successfully fish another day.

Looking at stocks at this moment in time, the evidence suggests an extraordinary disconnect. Vanguard Europe (VGK), SPDR Dow Jones Industrials (DIA) and SPDR High Yield Bond (JNK) all hit fresh 52-week highs on Thursday. The breadth of riskier assets that are forging ahead might suggest to participants that a "risk-on" attitude will continue to be quite profitable.

In the same vein, however, iShares Investment Grade Bond (LQD), SPDR Dividend (SDY) as well as PowerShares Low Volatility (SPLV) are also hitting new 52-week peaks. Moreover, 10-year Treasury bond yields are near their lows of 2014 (2.60%) after falling from 3.03% at the end of 2013.

Some signals make the waters even murkier. Leading trouble-makers of the 2007-2009 financial collapse have dropped below long-term trend lines, including SPDR KBW Bank (KBE) and SPDR S&P Homebuilders (XHB).

KBE 200

1 of 3

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $129.01 -0.27%
FB $80.00 0.50%
GOOG $570.67 -0.52%
TSLA $198.32 -0.62%
YHOO $42.87 0.59%


DOW 18,061.74 -141.63 -0.78%
S&P 500 2,092.90 -14.88 -0.71%
NASDAQ 4,952.5410 -27.36 -0.55%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs