For the general investor this list of ETFs is probably sufficient to to occupy 90% of his (her?) (hizzer?) portfolio. We just slogged through the entire list and imagine the number of charts we saw that were buyable. Nada. Zip. Nyet. Ninguem. A slight exaggeration. As everybody knows we’re long gold, but woldn’t buy anymore right now. We commented a while back that OIL (USO equivalent) was a good short. In general all of these issues can be summed up with one chart:
The prudent investor make take almost any issue from this list, draw a horizontal line at the December and November highs and take a blood oath not to buy the treacherous s.o.b. until that December line is taken out on good volume and price movement. In for a tranche on the first line. Increase the bet on breaking over the November high.
Now you can buy your self a handsome profit by taking a flyer now and buying some of these at present prices. And! The stories you can tell at cocktail parties in the future, because these issues will recover.But! when? And how much lower can they go? If you are of a gambling nature you can buy them and set your stops 3 or 4% under the near lows. And! We’re willing to bet that a lot of grief will be saved by drawing these lines in the sand and sticking by them.
That’s our story and we’re sticking to it.