ETF Screener: More Bad than Good

Submitted By The Correct Call

The Market welcomed President-Elect Obama with the worst post Election Day performance ever. Before any partisans get too worked up, we know none of his policies are in place yet. That being said, the market is forward looking and valuations will have to include the inevitable higher costs of capital due to higher taxes and more regulations. If the cost of capital goes up, it’s necessary for the underlying investment to lose value. We hope beyond hope and pray his Presidency is a success. Right or left we all share this incredible ride called America together and his success or failure will impact all of us.

Moving away for politics and back to our weekly ETF Screener post, we see the Japanese ETFs we highlighted on October 23rd have outperformed big-time. This week our Technical Analysis uncovered another emerging buy trend in an Asian Pacific International ETF.

Vanguard Pacific Stock ETF (VPL)

We found no new up or down trends in Bond, Currency or Asset Allocation ETFs. We did find emerging buy and sell signals in Sector and Style ETFs, which you will find listed below. It concerns us that we are still finding multiples of 5-10 to 1 sell signals versus buy signals. At some point we are hoping to see more charts washed out so that new sell signals are scarcer than buy signals, that doesn’t look close to happening just yet.

SECTOR ETFs

Buy

Sell