Stocks gave up gains before the weekend as the bears send the bulls hiding. ETF Short “FAZ” soared today gaining 15% making me believe the bear attack is back. My prediction of DOW 5000 is becoming a reality and the bear market rally has ceased for now!
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