China definitively announcing an end to tightening and/or offering up stimulus could bolster SPDR Metals and Mining ( XME) as well as Australia ( EWA) and South Africa ( EZA). A pleasant trajectory in the upcoming employment data may boost Vanguard Consumer Discretionary ( VCR).

3. Profit-Taking and Tax-Loss Harvesting. Even as the S&P 500 rocketed 3.4% in the singular Thursday session, volume was only average for the S&P 500 SPDR Trust ( SPY). In fact, institutional investors sold $521,000,000 of SPY into the day's strength.

Considering the sheer size and scope of SPY, this isn't a monstrous hit to the net assets. Nor would I regard it as a bearish sign. However, it may indicate a high level of interest in taking profits. It should also give folks reason to expect a higher-than-normal amount of volatility for November and December, as there will be plenty of investors needing to harvest their 2011 tax losses.
Disclosure Statement: ETF Expert is a website that makes the world of ETFs easier to understand. Gary Gordon, Pacific Park Financial and/or its clients may hold positions in ETFs, mutual funds and investment assets mentioned. The commentary does not constitute individualized investment advice. The opinions offered are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial or its subsidiaries for advertising at the ETF Expert website. ETF Expert content is created independently of any advertising relationships. You may review additional ETF Expert at the site.

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