I am retired and take educated guesses on all things financial.

August 05, 2008

August 5, 2008: Large Volume Increase ETFs to Examine

Back from a brief extended family outing in Niagara Falls, Canada. Nice to have USAF Maj. Tom and USAF Capt. Mrs. Tom (Jamie) and grandson Tom along. I highly recommend the serene Sterling Hotel and Spa off Ellen Street. Almost every spotless room in this one-year old eclectic hotel features multi-jet showers, a jacuzzi, plasma television, huge superb king-sized bed, hardwood floors and impeccable service. This quality is quite uncommon in Niagara Falls. For a couple of hundred bucks or less, you eliminate the riffraff stumbling down (or up) Clifton and the sounds,smells and Calcutta-type masses of humans mingled with small restaurant frying odors. It is also near the new Casino, which is friendly, smoke-free and easily accessible within a grand pavilion atmosphere.

My belief is that the US dollar is going to begin a gradual ascent, along with interest rates and a resultant recovery in the financial sector (wider spreads will do the trick after the remainder of the dirty bathwater is tossed out before the election). I am not a bull on Europe, especially "old Europe" and Russia. I am bullish on New Europe,the Pacific ex-China and the emerging Middle East. Modest commodity exposure remains essential. Certainly there are other areas that are interesting as well.

While having a few idle moments in my hotel room, I constructed a screen of ETFs that have had volume increases of over 100% compared to their 90-day moving average. Here are the eleven that made the cut:

PBE - PowerShares ETF Trust Dynamic Biot. and Gen. priced at $19.75.
PEJ - PowerShares ETF Trust Dynamic Leisure and Ent. priced at $13.45.
PJP - PowerShares ETF Trust Dynamic Pharmacy Port. priced at $18.17
PWB - Power Shares ETF Trust Dynamic Large CP. GR. priced at $16.80
PFI - PowerShares ETF Trust Financial Sector Port. priced at $22.50
RFG - Rydex ETF Trust S&P MC400 PURGR.priced at $53.07
RWR - SPDR Series Trust S&p Biotech priced at $67.76.
XBI - SPDR Series Trust DJWS REIT ETF priced at $69.20.
XOP - SPDR Series Trust S&P Oil Gas Exp priced at $51.20
XPH - SPDR Series Trust S&P Pharma. priced at $33.17
VPU - Vanguard World Utilities ETF priced at $76.35

A screen is what it is and none of the above are advocated for immediate purchase. They do indicate to me what areas are being traded for better or for worse. And money can be made if you are on the right side of the trade.

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