Exchange Traded Funds (ETF)

[winston]

Do ETFs face a liquidity risk?

Bogan Associates LLC made a name for itself in the passive investing community by warning about an ETF collapse.

The argument is pretty technically but, at its simplest, it argues that an ETF which has (a) a large number of short positions; and
(b) is subject to a large number of sale orders could not have enough cash to pay out all the investors (the more technical explanation is provided by Bogan Associates who explain how short selling can lead, in some situations, to more units than issued by the issuer itself).

John Heinzl is one of the many writers who have argued against Bogan Associate’s theory that ETFs can collapse.

What is interesting about Heinzl’s article is that Bogan’s highly technical piece appears to have made it to main street as iShares admits it fields calls daily about the possibility ETFs imploding.


http://www.thetradingreport.com/2011/02 ... dity-risk/

[winston]

5 PowerRatings ETFs for the Next 5 Days (as of Friday, February 4, 2011)

ETF / Symbol / PowerRating
1) SPDR S&P Emerging Markets Small Cap ETF EWX 9
2) ProShares UltraShort Semiconductors SSG 9
3) iShares Dow Jones U.S. Home Construction Index Fund ETF ITB 9
4) Direxion Daily 30-Year Treasury Bull 3x Shares TMF 9
5) Direxion Daily 10-Year Treasury Bull 3x Shares TYD 9

Source: Trading Markets

[winston]

High Probability ETFs for the Next 5 Days (as of 2/9/2011)

/ Name / Symbol / RSI(2)
1) Vanguard Emerging Markets ETF VWO 1.89
2) Market Vectors Coal ETF KOL 2.12
3) iShares MSCI South Korea Index Fund ETF EWY 2.34
4) iShares MSCI Hong Kong Index Fund ETF EWH 2.93
5) iPath S&P Goldman Sachs Oil Trust Index ETN OIL 3.97

Source: Trading Markets


Source: Trading Markets

[winston]

Looks like EM is back in vogue for the next week ...


5 PowerRatings ETFs for the Next 5 Days (as of Friday, February 11, 2011)

ETF / Symbol / PowerRating
1) iShares MSCI South Korea Index Fund EWY 10
2) iShares MSCI Taiwan Index Fund EWT 10
3) Vanguard Emerging Markets ETF VWO 9
4) Direxion Emerging Markets Bull 3x Shares EDC 8
5) ProShares Ultra MSCI Emerging Markets ETF EET 8

Source: Trading Markets

[winston]

High Probability ETFs for the Next 5 Days (as of 2/16/2011)

Name / Symbol / RSI(2)
1) PowerShares DB Oil Fund DBO 18.32
2) iShares MSCI South Korea Index Fund ETF EWY 26.37
3) United States Oil Fund LP USO 28.32
4) iShares Dow Jones U.S. Telecommunications Sector Index Fund ETF IYZ 30.73
5) SPDRs Select Sector Utilities ETF XLU 32.38


Source: Trading Markets

[winston]

5 PowerRatings ETFs for the Next 5 Days (as of Friday, February 18, 2011)


ETF / Symbol / PowerRating
1) ProShares Ultrashort Gold ETF GLL 9
2) ProShares Ultrashort Silver ETF ZSL 9
3) Market Vectors Russia ETF RSX 9
4) iShares DJ U.S. Telecommunications Sector Index Fund ETF IYZ 9
5) ProShares Ultra Telecommunications ETF LTL 9


Source: Trading Markets

[winston]

Looks like they are expecting a rebound in the US markets ..

High Probability ETFs for the Next 5 Days (as of 2/23/2011)

Name / Symbol / RSI(2)
1) iShares Dow Jones U.S. Telecommunications Index Fund ETF IYZ 0.40
2) Technology Select Sector SPDRS ETF XLK 2.62
3) iShares S&P MidCap 400 Index Fund ETF IJH 4.36
4) ProShares Ultra Financials ETF UYG 4.98
5) Vanguard Small Cap ETF VB 5.59


Source: Trading Markets

[winston]

Vietnam ? Dead Cat Bounce ?

5 PowerRatings ETFs for the Next 5 Days (as of Friday, February 25, 2011)

ETF / Symbol / PowerRating

1) iShares Dow Jones U.S. Financial Services Index Fund ETF IYG 9
2) ProShares Ultra Telecommunications ETF LTL 9
3) Retail HOLDRS ETF RTH 9
4) Regional Bank HOLDRS ETF RKH 9
5) Market Vectors Vietnam ETF VNM 9


Source: trading Markets

[kennynah]

sadly, i've never visited vietnam... i will make it a point to go see look one day, not too very far in the future...before it collapses

[winston]

High Probability ETFs for the Next 5 Days (as of 3/2/2011)

Name / Symbol / RSI(2)
1) Retail HOLDRS ETF RTH 9.59
2) Regional Bank HOLDRS ETF RKH 10.09
3) Financial Select Sector SPDRS ETF XLF 14.40
4) Consumer Staples Select Sector SPDRS ETF XLP 23.20
5) iShares MSCI Japan Index Fund ETF EWJ 28.93


Source: Trading Markets