As crude oil stayed above $51 a barrel, the United States Oil fund (USO: 30.76, +0.40, +1.31%) picked up 14.1% for the week. The SPDR S&P Oil & Gas Exploration & Production fund (XOP: 27.59, -1.33, -4.59%) gained 9.4%.
Investors fled risky housing-related and real estate funds after signs this week those industries still have a ways to go on the road to recovery. The SPDR DJ Wilshire REIT fund (RWR: 24.60, -2.28, -8.48%) shed 13% over the week, while the iShares Cohen & Steers Realty Majors Index (ICF: 26.81, -2.57, -8.74%) fund lost 11.5%.
This Week’s Industry News
Six MarketGrader ETFs will be shut down, sponsor SPA ETFs announced Monday. Three exchange-traded notes issued by Credit Suisse Securities will cease trading on the New York Stock Exchange by April 3 because of insufficient trading volumes. The Elements MLCX Gold Index ETN (GOE: 58.00, -2.15, -3.57%), Elements MLCX Livestock Index ETN (LSO: 7.99, +0.05, +0.62%) and Elements MLCX Precious Metals Plus Index (PMY: 8.00, -0.32, -3.84%) will close, but Credit Suisse said it will continue to list its Elements Credit Suisse Global Warming ETN (GWO: 4.40, +0.00, +0.00%).
Despite Rally, Short ETFs Still Lead Wall Street Being short continues to be all the rage, based upon Forbes’ Short Term PowerRatings. Despite a significant rally in equities, short ETFs still hold their place as the leader in today’s stock market. The Short Term PowerRatings attempts to find stocks that are performing well against the market as a whole. After closing in on a near two week rally, short ETFs are still dominating long ETFs and stocks as the best investment on Wall Street. Writing for Forbes, David Penn, senior editor of TradingMarkets, found very few stocks that could be substituted for some of the high-flying short ETFs on the Short Term PowerRatings list. “The fear of losing gains to a sudden reversal is what will eventually lead to the profit-taking that will bring stocks lower and short ETFs higher,” he said. Eighteen funds from the PowerRatings list posted gains of greater than 30% in the past year, with all of them being short or inversed investments. By: March 19, 2009 at 2:05 pm by ETF.com
Friday, 6 Mar 2009 www.cnbc.com Cramer’s Outrage: Short Sellers, the SKF and the SEC Cramer is directing the same level of energy toward eliminating ultra-short ETFs as he did in demanding the Federal Reserve open the discount window back in August 2007. (You all remember “They know nothing!” right? ) Regular Mad Money viewers have heard his calls to the SEC before. He wants the UltraShort Financials ProShares [SKF 125.35 6.25 (+5.25%) ] fund shut down because short traders are using it to hammer down financials stocks virtually unchecked. This is the fund that turns a $1 investment into $3 – an SEC-approved skirting of its own margin rules – putting even more pressure on the banks than the credit crisis has. That, of course, is why the shorts like the SKF so much. They’re kicking the sector when it’s already down, making a hefty profit in process. Watch the video for Cramer’s in-depth analysis. He puts the importance of short-selling rules in historical context – as in, lessons learned from the Great Depression – debunks the reasoning that former SEC Chairman Christopher Cox used to get rid of them, and explains how the SKF is aiding in the destruction of Citigroup [C 2.65 0.05 (+1.92%) ], Bank of America [BAC 6.2099 -0.7201 (-10.39%) ], Wells Fargo [WFC 14.40 -1.02 (-6.61%) ], US Bancorp [USB 13.76 -0.50 (-3.51%) ] and many other banks. Videos: http://www.cnbc.com/id/29553202
- Lower interest rates on corporate debt and mortgage loans
- Maintain a critical level of support for the bond market to keep values higher