This week we have seen what looks like a sector rotation trade involving two First Trust sector funds, where more than $700 million entered FXR (Industrials/Producer Durables AlphaDEX) and the same dollar amount exited FXG (Consumer Staples AlphaDEX). Trading volume in each of the funds topped 20 million shares apiece on Monday of this week, which are huge multiples of the typical daily volumes in each product.
In terms of price performance, FXR hit new 52-week highs this morning, while FXG, in contrast, continued its recent struggles (the fund is essentially flat year-to-date and is down 5.66% over the trailing six months).
Elsewhere, SPY has seen some profit taking into the SPX hitting new highs day after day lately, with over $3.3 billion flowing out of the fund via redemptions.
Meanwhile, one of the most volatile ETFs lately is XOP (SPDR S&P Oil & Gas Exploration & Production), which tanked down to its 50 day MA yesterday in the $37’s, only to recover all the way today and trade at new recent highs well above $40 on the huge post-OPEC Crude Oil spike today (crude is up some 7% from yesterday’s close). Options in this product have mostly involved downside put buying, most recently with December 34 puts trading earlier in the week before today’s large rally in XOP, so those traders better on an oil collapse next month might be sitting on big losses.
Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.
Paul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.
He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.