Appreciating QE2: ETF Pullback Choices

My ETF pullback strategy (see appendix below for details and performance information) is looking for the market to take a breather following a nice bounce off what I had described as an oversold condition back on June 9. Here’s the current list:

My ETF pullback strategy (see appendix below for details and performance information), updated a day early this week based on vacation travel tomorrow, has heavy silver exposure, supplemented by a dash of exposure to other precious metals and European real estate. Here’s the current list:

The two-week flirtation with silver engaged in by my ETF Pullback strategy (see Appendix below for details and performance information) is over, at least for now. The idea of this technical model is to look for recent corrections in the context of major uptrends, and play the prospect of the correction’s end. Here’s this week’s list :

Last week’s exposure in this weekly ETF Pullback strategy was a bit scary: Two ETFs focusing on the Middle East and two on the U.S. consumer sector. How could I not be concerned that events in Egypt would continue to roil regional equity markets and that a potential spillover into the price of oil would agitate consumer-related equities?As it turned out, Egypt remains tense, but the ETFs did exactly what this technical model hoped they would do: Bounce following a pullback ( see Appendix below for explanation and performance data).

As followers of this series know, ETFs relating to precious metals have appeared often in this weekly ETF pullback strategy (see Appendix below for explanation and performance data) as 2010 came to a close. They weren’t there at the very end of the year, but they’re back in the first rebalance of 2011. Here’s the present list:

Did you ever just look at a list of stocks or ETFs, roll your eyes, and feel tempted to start shopping on line for a dartboard? That’s pretty much how I felt looking this week at the list produced by my ETF Pullback strategy (see Appendix below for details and performance information). Here’s the current list:

Last week’s listing for the ETF Pullback strategy (see appendix below for details and performance information) was a pretty bold example of pure technical analysis: buying when subjective analysis clearly dictates otherwise based on an expectation that market dynamics will, at least for a short time (one week in the case of this strategy), produce a counter-intuitive result. Here’s last week’s list, which focused on oil and silver :

In recent weeks, my ETF Pullback model (see Appendix below for explanation and performance data) has taken something of a global tour, touching down in parts of Asia, South America, Africa, Turkey and Poland. This week there’s still some Asia exposure, but otherwise this is a pretty solid play on potential strength in the U.S. economy. Here’s the current ETF list: