Post-Thanksgiving, pre-Christmas, pre-inauguration. That's where we find ourselves. This is a great environment for tactical investing. Here are three ETF charts I’m watching, notes Robert Isbitts, founder of Sungarden Investment Publishing.
My overriding view is that this is a time to get gains while we can, and not assume that the good times will last for years. “Months” would be great. But “weeks” is also possible.
As for those charts, let’s start with...
1. Europe: Double bottom? Looks possible. The SPDR Euro Stoxx 50 ETF (FEZ) has underperformed the SPDR S&P 500 ETF Trust (SPY) by such a wide margin, you’d think it didn’t invest in stocks. Since June 5, it is down 7% to SPY’s 13% gain.
2. Bigger's been better. The Invesco S&P 500 Top 50 ETF (XLG) is an ETF that tracks the 50 largest stocks in the S&P 500. Straight as an arrow for two years now. Good news: This is one rocking stock market for the biggest stocks. Bad news: Are we well on the way to just 50 stocks being all that matter? These 50 stocks now make up more than 60% of the 500-stock index.
3. Country music to the bulls' ears. What country ETF that has outperformed six of the Magnificent Seven stocks this year? The Global X MSCI Argentina ETF (ARGT).
Really. And the way that country's new reformist leader helped this happen, it will be very intriguing to see if the US's new bosses can replicate that. Or, if that's behind the move we are seeing right now.
