While I wouldn't advocate jumping the gun on Commodity ETFs, readers should note that I've been talking about China's resurrection since early October. For instance, the Oct. 13 article on "China ETFs Trampoline Off the Bottom" makes the case that resource-rich nations that export to China will fare particularly well when China eases monetary-fiscal policy. Resource-rich Country ETFs that have eclipsed 50-day trendlines include iShares MSCI Australia Index ( EWA), iShares MSCI South Africa Index ( EZA) and iShares MSCI Malaysia Index ( EWM). Nevertheless, Commodity ETFs will need to join the uptrends soon. Otherwise, skepticism about the sustainability of current bullishness is likely to creep back into the picture.
China's erratic stock-market and Brazil's credit-rating downgrade sent investors scurrying from emerging-market exchange-traded funds during the third quarter -- and there's probably further selling ahead.