MOST READ: Best ETFs for the Rest of '08

More than three-quarters of all ETFs are sitting in negative year-to-date territory as we approach the end of the second quarter, leaving investors wondering whether there's hope for the rest of the year.

The financials, oil, the dollar and commodities have been among the dominating themes in the first half of 2008, and the challenge is to figure out what trends will dominate in the latter half.

Tom Lydon, president and portfolio manager for California-based Global Trends Investments sees the dollar gaining momentum over the next six months. One of his top picks among ETF names is the PowerShares DB U.S. Dollar Bullish Fund(UUP Quote).

"The Treasury and the Fed have sent signals that they want a stronger dollar, and they're ready to defend it," he says. "The U.S. hasn't intervened in the currency markets since 2000, and Bush has preferred to let market forces do their work. But this trend seems to be changing." ...