Wednesday, October 3, 2007

ETF Trendspotting

One of my daily routines is to download the entire day's ETF results from the Wallstreet Journal into Excel and sort the data.

I like to sort by the daily % change and the YTD % change. You can further filter the list by the volume traded. After doing this for several months and months you see trends develop.

TIP: Make sure you save and archive each daily ETF Excel download for future use since the WSJ does not maintain an archive of prior days. Also, I have compared the historical return data in Yahoo Finance's ETF site and find that its often inaccurate.

For an example of trendspotting just look at SLX (steel). This has been the top performing ETF (71.7% YTD as of today!!) going back to earlier this spring. It currently holds the #2 spot right now, just behind GXC, a SPDR focused on China. Way back on June 20 SLX was the #1 YTD returning ETF with 45% return. Since then its gained a stellar 26.7%!

I like to focus on ETF's with daily % changes >1% and especially those >2%. You quickly see what sectors and parts of the market are performing well. You can also do the inverse and look at the biggest daily losers.

Today's Biggest Gainers with Vol>1M:
Symbol % Chg Volume
ITB 3.02% 1,054,300
XHB 2.08% 7,475,800
QID 1.21% 19,695,657
EZA 1.1% 1,125,000

Gaining Sectors: Contruction, homebuilders, ultrashort QQQQ, South Africa

Today's Biggest Losers with Vol>1M:
Symbol % Chg Volume
FXI -5.29 6,599,379
PGJ -4.97 1,240,900
EWH -4.6 9,344,064
EWZ -4.33 13,190,835
EEM -3.03 15,546,683
UNG -2.5 1,086,078
EWS -2.35 4,359,800
SMH -2.05 13,140,600
EWY -1.88 1,543,981
QLD -1.54 1,225,105
EWW -1.48 3,547,971
EWM -1.47 1,622,462
XLB -1.29 5,685,483
XLK -1.17 1,860,900
EWT -1.04 13,337,916

Losing Sectors: China, Asian emerging markets, Brazil, semiconductors, technology, natural gas

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