How Will ETF Investors Know If The Bear Has Returned? (DIA, SPY)
Well, for one, the market will break back below a yearly cycle low initiating a series of lower lows and lower highs. This year that cycle low was set in February. But didn’t the market break that low during the recent correction?
Well yes and no! The S&P 500 ETF (NYSE:SPY) and DOW Diamonds Trust ETF (NYSE:DIA) did both marginally break below the February lows. However a big part of the weakness that dragged these two indexes down was due to crumbling energy stocks as the mess in the gulf unfolded.
The rest of the market held above the February lows. Some like the transports comfortably above those levels. I tend to think if the economy was ready to fall back into recession again we would be seeing a lot more weakness in the trannies.
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The banking industry has also held up quite well during the recent crisis. Surprising since it was the failing European financial sector that has been blamed for the current market swoon. If the financial sector is collapsing again how come the banks are holding above the February lows?
GoldScents is a financial blog focused on the analysis of the stock market and the secular gold bull market.
The best way to play the S&P 500 and the DJIA index is through ETFs and we have included some details on the SPDR S&P 500 ETF (NYSE:SPY) and the DOW Diamonds Trust ETF (NYSE:DIA) as a long play on the market below:
SPDR S&P 500 ETF (NYSE:SPY) Visit Our SPY Category: HERE
The SPDR® S&P 500® ETF is a fund that, before expenses, generally corresponds to the price and yield performance of the S&P 500 Index (Ticker: SPTR). Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs.
| TOP 10 HOLDINGS ( 19.26% OF TOTAL ASSETS) |
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DOW Diamonds Trust ETF (NYSE:DIA) Visit Our DIA Category: HERE
The investment seeks to provide investment results that, before expenses, generally correspond to the price and yield performance of the Dow Jones Industrial Average (DJIA). The fund holds the Portfolio and cash, and is not actively “managed” by traditional methods. To maintain the correspondence between the composition and weightings of stocks held by the Trust and component stocks of the DJIA, the Trustee adjusts the portfolio from time to time to conform to periodic changes in the identity and/or relative weightings of index securities, typically within three business days before or after the day on which such changes are scheduled to take effect.
| TOP 10 HOLDINGS ( 52.75% OF TOTAL ASSETS) |
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