Home Site Map About Us My Account Shopping Cart Help Sign In

Exchange Traded Fund (ETF) Focus - This Week's Leading and Lagging Sectors

by Nick Perry (regressionchannels@sir-inc.com) 10/21/2005 1:26 PM

Text Size |

Email a friend |

Print |

Keywords:

This weekly column of SchaeffersResearch.com highlights leading and lagging Exchange Traded Funds (ETF) and is designed to supplement the data you can find our ETF center. The graphs below are based on a select list of ETFs that I follow and reflect the returns from last Friday's close through this afternoon.

Note: If you are not familiar with the advantages that ETFs offer, make sure you read the information in our Education and FAQ sections.

Last week we saw continued selling as most groups traded lower, while utilities and various energy-related groups were the worst performers. This week we find that the utilities and energy groups continued to struggle...

This Week's Leading and Lagging Exchange Traded Funds

The magnitude of the declining groups still outpaced the moves on the upside, but we see a closer balance than we have in the last couple of weeks. At the top of the list we find the internet ETF. While the HHH does not include Google (GOOG: sentiment, chart, options) , and therefore isn't directly benefiting from Friday's gap higher, the move higher might be giving a boost to the overall psychology surrounding the group.

As I noted, the utilities and energy groups continued to struggle and some of the ETFs are nearing the long-term support levels I showed here. I haven't changed my views but clearly I have been wrong on the short-term action. For the longer-term view to hold, these groups will need to start showing some signs of stabilizing as they near support.

For a longer-term perspective, the bullets below show the year-to-date returns for the ETFs listed above.

Year-to-Date Returns for This Week's Top Performing Sector Exchange Traded Funds:

Internet HOLDRS (HHH: sentiment, chart, options) -14.3%
Regional Bank HOLDRS (RKH: sentiment, chart, options) -7.1%
iShares Software Index (IGV: sentiment, chart, options) -6.3%
iShares Networking (IGN: sentiment, chart, options) -1.9%
iShares Technology (IYW: sentiment, chart, options) -2.6%
iShares Treas Bond (TLT: sentiment, chart, options) +3.2%
Retail HOLDRS (RTH: sentiment, chart, options) -5.7%
iShares Technology Indx (IGM: sentiment, chart, options) -4.3%
Nasdaq-100 Trust (QQQQ: sentiment, chart, options) -3.6%
iShares Financial Svcs (IYG: sentiment, chart, options) -6.8%

Year-to-Date Returns for This Week's Bottom Performing Sector Exchange Traded Funds:

iShares Healthcare (IYH: sentiment, chart, options) +1.6%
Health Care Sector SPDR (XLV: sentiment, chart, options) -0.0%
iShares Utilities (IDU: sentiment, chart, options) +7.3%
Utilities HOLDRS (UTH: sentiment, chart, options) +11.4%
Utilities Sector SPDR (XLU: sentiment, chart, options) +8.2%
Pharmaceutical HOLDRS (PPH: sentiment, chart, options) -7.7%
Oil Service HOLDRS (OIH: sentiment, chart, options) +27.1%
iShares Natural Resource (IGE: sentiment, chart, options) +20.5%
Energy Sector SPDR (XLE: sentiment, chart, options) +26.0%
iShares Energy (IYE: sentiment, chart, options) +21.7%

I ended last week's column by noting how a large number of ETFs had hit oversold levels. These were numbers not seen since late-March of this year and August of last year and I suggested it might mean that selling had reached a point where a small pause might be in order. Here is the updated weekly chart of the S&P 500 Index (SPX) ...

Created with SuperCharts by Omega Research

While the action has been volatile, the SPX did hold above last week's lows. Whether a bounce will follow has yet to be determined, but this did at least offer a good signal that short-term selling pressure had peaked.

Finally, for this week, I want to turn your attention to the Pharmaceutical HOLDRS (PPH: sentiment, chart, options) . While I tend to view this as a relatively "dull" group, it did make this week's bottom performing list and the chart is worth noting...

Monthly Chart of the Pharmaceutical HOLDRS (PPH)

Created with SuperCharts by Omega Research

To fully appreciate where this groups sits, you need the monthly view above. The PPH is precariously perched on support zone that it has never violated on monthly closing basis. Granted, this only covers five years or so, but I still thought it was worth noting...

Discuss this article:

Post your own comment

Options Stew: A Taste of the Week's Spiciest Plays

(11/20/2009 10:45:27 AM)

Welcome to our new video series, Options Stew, where we take a look back at what's been cookin' in the option pits this week. Join us as we sample just a few of the unusual option plays from the past week, with our "recipe" broken down into three unique segments:

read more...

Schaeffer's Media Outtake: Thoughts on Hedging, Volatility

(11/19/2009 4:15:00 PM)

"Standard & Poor's, the world's leading index provider, announced today the launch of the S&P 500 Dynamic VEQTOR Index which dynamically allocates between equity, volatility and cash to provide broad equity market exposure with an implied volatility hedge. 'Implied equity volatility typically has a strong negative correlation to equity market returns, and is considered a useful tool to hedge against the potential downside risk of the broad equity market,' says Liz Taxin, Director of Strategy Indices for S&P Indices. The S&P 500 Dynamic VEQTOR Index is comprised of three components: Equity, as represented by the S&P 500; Volatility, as represented by the S&P 500 Short-Term VIX Futures Index; and Cash, as represented by the Overnight LIBOR rate. The Index allocates between equity and volatility based on the combination of realized and implied volatility trend decision variables, and these allocations are evaluated on a daily basis."
(PR newswire � 11/18/09)

read more...

Put Trading Swells on J. Crew Group Ahead of Earnings

(11/18/2009 11:05:48 AM)

Retailers continue to line up for the earnings confessional, and one particular high-flyer is slated to release its quarterly report next week. J. Crew Group Inc. (JCG: sentiment, chart, options) is known for its preppy fashions, including jeans, khakis, and other basic (but often pricey) items sold to young professionals. J. Crew sells through its catalogs, Web sites, and some 300 retail and outlet stores in the U.S. under the J. Crew, crewcuts (for kids), and Madewell banners. Madewell, launched in 2006, is a women's-only collection of hip, casual clothes.

read more...

Drilling Down on Rowan Companies' Rally Prospects

(11/18/2009 10:00:00 AM)

Rowan Companies Inc. (RDC: sentiment, chart, options) performs contract drilling of oil and gas wells. Its fleet consists of 22 jack-up rigs and 32 land-drilling rigs. The company operates primarily in the Middle East, Texas, the Gulf of Mexico, and the North Sea.

read more...

Drug Delay Prompts Put Trading on ISIS Pharmaceuticals, Inc. (ISIS)

(11/17/2009 1:50:13 PM)

Bearish option bettors have virtually blitzed ISIS Pharmaceuticals, Inc. (ISIS: sentiment, chart, options) today, with intraday put volume skyrocketing to nearly 38 times the norm. The pharmaceutical firm this morning confessed that it's delaying plans to seek approval for experimental drug mipomersen by nearly a year, from mid-2010 to mid-2011.

read more...

Pre-Earnings Option Activity Accelerates on Sears Holdings Corporation

(11/16/2009 1:55:56 PM)

Sears Holdings Corporation (SHLD: sentiment, chart, options) has been a hot topic on both sides of the options aisle today, as investors race to place their bets ahead of the retailer's looming turn on the earnings stage. According to Thomson Reuters, the firm is expected to report its third-quarter figures before the opening bell on Thursday, Nov. 19.

read more...

Options Traders Bulk Up on Puts on Software Vendor

(11/13/2009 12:34:23 PM)

Options players are placing some heavy bets that salesforce.com inc. (CRM: sentiment, chart, options) is going to suffer a disappointing earnings report next week, as traders load up on puts. The International Securities Exchange (ISE) has reported 2.7 puts purchased to open for every one call purchased to open during the past 10 trading sessions. This ratio of puts to calls is higher than 93.8% of all those taken during the past year. In other words, puts are significantly more popular than calls among traders.

read more...

Hopes Are Riding High for GameStop's Earnings

(11/13/2009 11:35:33 AM)

The video game sector is struggling. U.S. video game sales dropped by 18% in October compared to the same period last year, according to the latest data from NPD Group. Meanwhile, analysts had forecast a more modest decline of 11%.

read more...

Options Stew: A Taste of the Week's Spiciest Plays

(11/13/2009 10:55:42 AM)

Betting on a Short-Term Bounce for First Solar, Inc. (FSLR)

(11/12/2009 3:15:41 PM)

Call traders have been fond of First Solar, Inc. (FSLR: sentiment, chart, options) today, despite the solar concern's retreat into the red. In afternoon trading, the security has already seen roughly 18,000 calls cross the tape � nearly tripling its average intraday volume of fewer than 6,250 contracts.

read more...

SchaeffersResearch.com can alert you to new articles containing your favorite authors, ticker symbols or keywords. Enter your favorite authors, ticker symbol or keyword and click go.

Today's Most Popular Stories

Read

Emailed

Editor's Pick

Options Edge: CF Industries, Solarfun Power, E TRADE Financial, and Conseco, Inc. 11/19/2009 9:29 AM

Options Report: Buying Opportunities Among Internet Retailers 11/19/2009 3:30 PM

Schaeffer's Media Outtake: Thoughts on Hedging, Volatility 11/19/2009 4:15 PM

Market Recap: Chipmakers Blaze the Path Lower on Sector Downgrade 11/19/2009 4:17 PM

Featured Companies

Internet Holdrs (HHH)
Pharmaceutical Holdrs (PPH)

Add to Watchlist

Add Alert

Receive FREE access to Schaeffer�s

premier online options magazine!

Podcasting

Videocasting

	Schaeffer's Daily Q&A: What Is Put Selling Nov 20 2009 4:12 PM
Options Stew: A Taste of the Week's Spiciest Pl... View More...

Partner Center

<script language="JavaScript" src="http://c5.zedo.com/jsc/c5/ff2.js"></script><noscript> <a href="http://xads.zedo.com/ads2/r?n=457;c=166;s=1;x=1024;u=j;z=[timestamp]" target="_blank"><img border="0" width="120" height="60" src="http://xads.zedo.com/ads2/x?n=457;c=166;s=1;x=1024;u=j;z=[timestamp]" alt="Click here"></a> </noscript>	<script language="JavaScript" src="http://c5.zedo.com/jsc/c5/ff2.js"></script><noscript> <a href="http://xads.zedo.com/ads2/r?n=457;c=167;s=1;x=1024;u=j;z=[timestamp]" target="_blank"><img border="0" width="120" height="60" src="http://xads.zedo.com/ads2/x?n=457;c=167;s=1;x=1024;u=j;z=[timestamp]" alt="Click here"></a> </noscript>	<script language="JavaScript" src="http://c5.zedo.com/jsc/c5/ff2.js"></script><noscript> <a href="http://xads.zedo.com/ads2/r?n=457;c=168;s=1;x=1024;u=j;z=[timestamp]" target="_blank"><img border="0" width="120" height="60" src="http://xads.zedo.com/ads2/x?n=457;c=168;s=1;x=1024;u=j;z=[timestamp]" alt="Click here"></a> </noscript>	<script language="JavaScript" src="http://c5.zedo.com/jsc/c5/ff2.js"></script><noscript> <a href="http://xads.zedo.com/ads2/r?n=457;c=169;s=1;x=1024;u=j;z=[timestamp]" target="_blank"><img border="0" width="120" height="60" src="http://xads.zedo.com/ads2/x?n=457;c=169;s=1;x=1024;u=j;z=[timestamp]" alt="Click here"></a> </noscript>
<script language="JavaScript" src="http://c5.zedo.com/jsc/c5/ff2.js"></script><noscript> <a href="http://xads.zedo.com/ads2/r?n=457;c=174;s=1;x=1024;u=j;z=[timestamp]" target="_blank"><img border="0" width="120" height="60" src="http://xads.zedo.com/ads2/x?n=457;c=174;s=1;x=1024;u=j;z=[timestamp]" alt="Click here"></a> </noscript>	<script language="JavaScript" src="http://c5.zedo.com/jsc/c5/fo.js"></script><noscript> <a href="http://xads.zedo.com/ads2/r?n=457;c=171;s=1;x=1024;u=j;z=[timestamp]" target="_blank"><img border="0" width="120" height="60" src="http://xads.zedo.com/ads2/x?n=457;c=171;s=0;x=1024;u=j;z=[timestamp]" alt="Click here"></a> </noscript>	<script language="JavaScript" src="http://c5.zedo.com/jsc/c5/ff2.js"></script><noscript> <a href="http://xads.zedo.com/ads2/r?n=457;c=172;s=1;x=1024;u=j;z=[timestamp]" target="_blank"><img border="0" width="120" height="60" src="http://xads.zedo.com/ads2/x?n=457;c=172;s=1;x=1024;u=j;z=[timestamp]" alt="Click here"></a> </noscript>	<script language="JavaScript" src="http://c5.zedo.com/jsc/c5/fo.js"></script><noscript> <a href="http://xads.zedo.com/ads2/r?n=457;c=173;s=1;x=1024;u=j;z=[timestamp]" target="_blank"><img border="0" width="120" height="60" src="http://xads.zedo.com/ads2/x?n=457;c=173;s=0;x=1024;u=j;z=[timestamp]" alt="Click here"></a> </noscript>

Monday Morning Outlook:
Prepare for the investing week ahead. Every week, Bernie and his staff provide you with their insight about what has happened and, more importantly, what will happen in the market. We dig deep and show you what's happening behind the scenes, and tell you which indicators are predicting major market moves.

Market Recap:
At the end of every market day, we review the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report.

Opening View:
Every morning, our research staff analyzes the prior day and the overnight markets, and monitors the morning wires to give you an accurate preview of the day to come. delivered to your inbox before the opening bell.

First Name Add your first name Last Name Add your last name Email Add a valid address Password Min. size 4 chars

I would like to be contacted periodically by Schaeffer's Investment Research concerning its own products and services, and those of carefully selected advertisers. I understand that I can opt-out of further messages at any time.

� 2009 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242
Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: service@sir-inc.com

Exchange Traded Fund (ETF) Focus - This Week's Leading and Lagging Sectors

by Nick Perry (regressionchannels@sir-inc.com) 10/21/2005 1:26 PM

HHH

PPH

etf