“ETFs rise as equity market rallies” seems to be an obvious statement, and it is, but the reason we make that statement is because we had only two ETFs last week post loses (HEDJ and DXJ) and they were both due to currency fluctuations and not the equity markets. All but seven of our other ETFs (EFA, DVY, IJR, VNQ VIG, VGK, GLD) set new highs last week.
Unfortunately, the continuing decline of the US dollar impacts HEDJ, and it is now just 3.5% away from our yellow “Caution” arrow. We see no cause for concern as of yet — HEDJ is still trading 8.5% above where we would change it from a Long Term Uptrend to a Long Term Downtrend.
Despite the hiccup with HEDJ all of our other ETFs continue in strong Long Term Uptrends. In fact, as we previously mentioned, almost all either set new highs or appreciated last week. With the exception of HEDJ, none are close to “Caution.” None, including HEDJ, approach the moment when one should sell. Optimism defines the upcoming week.
