Category: Market News, Research & Commentary

January 2022 continues to be an above average trading volume month for the major market indexes.

SPY, the S&P 500 ETF managed to stabilize this last week a bit, after spending the rest of the new year downtrending.

Looking at their RSI, it looks like there may be more selling to come in the near-term, particularly as their 10 Day Moving Average approaches their 200 Day MA bearishly.

QQQ, which tracks the NASDAQ index also was able to gather some footing, after also sliding downward into the new year.

They too look set to resume the downward movements in the near-term, as their RSI comes out of deeply oversold territory & their 50 Day Moving Average is only ~5% away from crossing bearishly through the 200 Day MA.

It still doesn’t quite look like time to be buying into the markets just yet.

Let’s dive into some of the sectors & industries that are performing the best & worst below.

Corn (CORN), Soybeans (SOYB), Palladium (PALL) & Multifactor Energy (JHME) Are All Leading The Pack

CORN, the Teucrium Corn Fund ETF has been steadily climbing since October of 2021.

With their RSI approaching being overbought & their MACD beginning to flatten out, there may be some pain on the near-term horizon here, although so far they have fared better in 2022 than the broader market indexes.

Recently though, there volumes have been lower than average when compared to the rest of the year.

SOYB, the Teucrium Soybean Fund has also enjoyed a strong end of 2021 that carried into 2022, gapping up 1.48% on Friday 1/28/2022.

With their 50 & 200 Day Moving Averages bullishly crossing, there looks to be more strength in the near-term for SOYB.

Keep an eye on their RSI though, as that will need to neutralize more as they establish a new price range.

SOYB’s volume has been above average for the last couple of months though, showing strong support in their price movement.

PALL, the Aberdeen Standard Physical Palladium Shares ETF has recovered nicely since mid-December’s ~18% drop.

While they do not have options for trading puts, there looks to be signs of continued momentum in the near-term, after their price just broke out above their 200 Day MA.

Their RSI will cool down in the near-term, but that may prove a buying opportunity, as their 10 Day MA is fast approaching the 200 Day MA, which will add additional strength & support to drive prices higher.

JHME, the John Hancock Multifactor Energy ETF has steadily grown since September, while also paying a 2.2% annual dividend.

The last few days have seen increased volumes, but their price will need more momentum to break above the $26.54 mark, which may be difficult with their RSI just about in overbought territory.

However, their MACD implies that they may be ready to keep climbing, but first they need to keep their heads above the $26.22-price level.

High-Growth Entrepreneurial (ENTR), Cloud Computing (SKYY), Cancer Immunotherapy (CNCR) & Clean Energy (ACES) Are All Lagging The Pack

ENTR, the ERShares Entrepreneur 30 ETF has been in relative free-fall since a large gap down in mid-November.

While their MACD looks to be turning around bullishly & their RSI is deeply oversold, I’ll be watching how they manage to keep their heads above the $12-level to begin establishing a support level.

With such a low dividend yield I don’t see any advantage into rushing into this name, until after it has built up some more momentum & strength.

SKYY, the First Trust Cloud Computing ETF has also experienced similar troubles since mid-November 2021.

They’re going to look to settle their RSI in a more neutral area, and may begin building support off of this $85-level that we are seeing, as their MACD looks to be gearing up to turn bullish.

Their trading volumes continue to increase vs. last year’s averages, which should help them establish a floor of support.

However, given the nature of the industry that this ETF tracks I’m not sure that their <1% dividend yield will do much in terms of limiting downside risk here & we could see more pain to come as interest rates rise in the spring.

CNCR, the Loncar Cancer Immunotherapy ETF is another name that has had constant struggles since mid-November 2021.

Their RSI is deeply oversold, but it doesn’t appear clear that they are beginning to form a bottom & gain support.

While the MACD is becoming increasingly more bullish, there is still risk associated with trying to time their bottom here.

One thing of comfort, they offer a 10% annual dividend yield, giving you a cushion of protection until they reach around the $16.50 level should they continue to fall.

I’ll be keeping an eye on them & be doing more research, as the 10% yield could be very worthwhile, research pending.

ACES, the ALPS Clean Energy ETF also has faced big headwinds since mid-November 2021.

Another name that has yet to find a level of support, that also offers too low of a dividend to make trying to time the bottom in pricing worthwhile.

Their heavily-oversold RSI & MACD that is turning bullish may help solve that problem & build them support in the $48-49 neighborhood, but it’s still too early to speculate.

2022 has only seen slightly above average volume for them, which doesn’t inspire a lot of optimism & confidence.Tying It All Together

Tying It All Together

One of the most clear things that the charts are telling me as I write this is that no one really still knows what is going on.

How this uncertainty will play into the pricing of stocks & ETFs is anyone’s guess, but in times of extreme volatility like we are experiencing watching the technicals on the names you’re interested in becomes all the more vital.

Also, having exposure to quality, high-yielding dividend stocks & ETFs, as well as some of the volatility based ETN exposure is going to be very beneficial to your portfolio.

Let’s see what happens this week!

*** I DO NOT OWN ANY OF THE ETFs MENTIONED ABOVE, ALTHOUGH I DO OWN SPXS CALLS AT THE TIME OF WRITING THIS ***

Let’s be honest, no one needs me to break down what 2022 has been like for the S&P 500 & NASDAQ; the charts speak for themselves & we all know why its happening.

SPY & the S&P 500 have been less impacted than the NASDAQ, which is to be expected in an anticipated environment of raising rates.

SPY’s in oversold RSI territory, but their MACD & volume levels don’t convince me that the pain is through just yet.

Let’s see how they hold up around the $424-430 range, which is only ~1% away.

QQQ has fared worse, and looks to be on the verge of having a bearish 50 & 200 Day Moving Average crossover, adding to downward pressure on prices.

With an RSI at 25, there should be a bit of bouncing around to get them out of such deep oversold territory, but the MACD & MA situations don’t look pretty.

Oil & Gas Exploration & Production (IEO), Saudi Arabia (KSA), Wheat (WEAT) & High Dividend (HDV) Names Have All Been Beating The Pack

IEO, the iShares US Oil & Gas Exploration & Production ETF continues to be one of the top performing ETFs from a technical standpoint.

Their MACD looks set to roll over bearishly, although yesterday they bullishly crossed their 10 Day Moving Average on better than average trading volume.

With an RSI at 61, this looks to continue higher to re-test the $73.05-level.

KSA, the iShares MSCI Saudi Arabia Capped ETF has also continued having a strong year.

They too have a bearish looking rollover starting on their MACD line, yet yesterday broke out above their 10 Day MA on above average volume.

With their RSI approaching being overbought, it will be interesting to see how they fare against the $45.37 resistance level, ~2% away.

WEAT, the Teucrium Wheat Fund ETF has also been outperforming many of its peers in the ETF markets.

WEAT ETF looks to have solid momentum to test the next level of resistance at $7.82/share, after briefly breaking through the price level yesterday.

Based on their RSI, MACD setup, and 10 Day Moving Average about to bullishly cross through the 50 Day MA, on high trading volume, this looks to have solid momentum behind it.

HDV, the iShares Core High Dividend ETF has seen short-term difficulties, but an overall strong performing year.

While their MACD is still negative, their RSI has gone back to neutral & they have had above average trading volumes in 2022’s sessions.

HDV will need to break above the $102.42 level before testing the $103.74 price level.

FinTech Innovation (ARKF), Internet Giants (OGIG), ESG Mid-Cap Growth (NUMG) & Clean Power (CNRG) Names All Lagging The Pack

I don’t think anyone is surprised to hear that ARKF ETF, the ARK FinTech Innovation ETF is having a terrible year.

RSI is terribly oversold, volumes are all above average, price is 1%+ below the 10 Day MA & the MACD is still bearish.

With no yield, this looks like complete & utter junk.

OGIG, the O’Shares Internet Giants Index ETF has also been falling steadily over the last year.

It’s another one that’s got above average volumes, a bearish MACD, very oversold RSI, & is only ~1% off of the year’s bottom in pricing.

NUMG, the Nuveen ESG Mid-Cap Growth ETF has also faced a similar set of difficulties this year.

They too are still in a free fall based on their technicals; oversold RSI, MACD still very bearish & the recent death cross of the 50 & 200 Day Moving Averages spell more trouble to come as this name tries to establish footing.

CNRG, the SPDR S&P Kensho Clean Power ETF is another name that has been getting beaten badly over the last few months.

Another underperforming name, trying to figure out where it bottoms out.

RSI deeply oversold, MACD bearish & recent volume is above average.

Not sure where we will see this bottom, but for those interested in a position, there is a 1.57% price cushion for protection via their dividend yield.

Tying It All Together

Overall, there looks to be more selling ahead of us, although we should get more clues today on the Federal Reserve’s plans, which will be nice.

I would be focused on having options hedges for anything being bought now, as there does look to be continued volatility in the near-future.

Let’s see what the rest of the week holds!

This week looks set to explain itself just by looking at the charts for the S&P 500 & the NASDAQ.

TQQQ’s punch bowl looks to have been emptied & the lights turned off, UPRO is doing a bit better, but still showing a lot of weakness.

TQQQ closed beneath its 200 Day Moving Average today (1/18/22), meanwhile they’re finishing the last of the drinks in the fridge at UPRO’s place, as MACD’s & RSI’s are showing the party is over (at least temporarily).

Adding Earnings Calls on top of all of the other recent news highlights is going to ensure an interesting couple of weeks, as we creep closer to rate hikes in the US.

Commodities (GSG), Energy (JHME), Mexico (MEXX) & India (INDL) Are All Leading The Pack

It’s no surprise to anyone that commodities are in demand.

GSG ETF tracks futures contracts on a wide range of commodities & has performed strongly over the last year.

As their RSI approaches 50 it will be interesting to check in with their MACD trend, as volumes haven’t been high in their recent decline.

JHME, the John Hancock Multifactor Energy ETF has also performed strongly this past year.

I expect some near-term pullback, as their RSI settles down from being so overbought.

MEXX, the Direxion Daily MSCI Mexico Bull 3X Shares ETF has also been having a great performance this year.

However, judging by their recent bearish MACD crossover & 50:200 Day Moving Averages there looks to be a nearing decline in prices, which could prove a buying opportunity for those looking to establish a position.

INDL, the Direxion Daily MSCI India Bull 2X Shares ETF has also had a strong year.

This is another one to watch, as their MACD & Price:10 Day MA are showing that there may be more near-term pain to come.

Small Cap Utilities (PSCU), Global Water Index (CGW), Aerospace & Defense (XAR) & Homebuilders (XHB) All Lagging The Pack

PSCU, the Invesco S&P Small Cap Utilities ETF has been underperforming over the last year.

There looks to be more pain to come, but depending on its holdings there may be an entry-opportunity on the horizon, as there is a ~3% annual cushion in the dividend yield.

I would be keeping an eye on their MACD & volume levels before beginning to make any type of move though, based on their moving averages:price & RSI.

CGW, the Invesco S&P Global Water Index ETF is another that has had a difficult time recently.

Another one in free-fall that may be worth looking at an entry to eventually if it fits your portfolio strategy.

There is less cushion though, as their dividend yield is only 1.74%.

XAR, the SPDR S&P Aerospace & Defense ETF has also been having a difficult year.

This looks to have more pain in the near-future, with the MACD about to bearishly cross, bringing the 10 Day MA below the 50.

XHB, the SPDR S&P Homebuilders ETF has had a tough 2022.

They’re looking at dipping into oversold RSI territory if they can’t establish a range above the 200 Day Moving Average.

Tying It All Together

Market participants are all still trying to figure out how to make sense of the current headlines.

Add in the adjustment in interest rates & how that will adversely impact “year ahead earnings” investment styles that many folks did during the tougher COVID months & it muddles the question even more.

While there do look to be discounts for starting new positions on the horizons, it’s tough to tell when the best moment is, but using these ETFs as barometers certainly helps.

Of course, look at each ETF’s holdings before making any full on judgements about them & their related sectors.

*** I DO NOT OWN SHARES OR OPTIONS CONTRACTS FOR OF ANY OF THE NAMES LISTED ABOVE ***

One week into 2022 & its already been a hell of a time.

Broader indexes are already having difficulties in the new year, as investors try to make sense of what the Fed’s policies for the year & how that will impact inflation & investing strategies, all while trying to understand what Omicron’s impact on life will be.

QQQ, an ETF that tracks the NASDAQ is down 5.4% in the first days of trading, while SPY, an ETF that tracks the S&P 500 is down 2.6% for the same period.

It’s still awfully early on in the year to be making major assumptions & expectations, but the technicals on the charts signal that there will be more volatility & moves downward this year, with the last week only being a taste of what’s to come.

Regional Banks (DPST), Natural Gas (FCG), Peruvian Equities (EPU) & Consumer Staples (XLP) All Are Performing Well On Strength

Regional Banks have had quite the turnaround since July of 2021.

DPST, the Direxion Daily Regional Banks Bull 3X Shares ETF has nearly doubled in price since then.

While their moving averages look appealing, I may keep an eye on DPST’s RSI, which is in overbought territory, as well as the angle of their MACD.

This may be an opportunity for beginning or adding to an existing position coming in the near-term as it begins to establish a new price range.

FCG ETF, which is the First Trust Natural Gas ETF has also rebounded from the troubles that it saw in July.

With their RSI back around 60 & a bullish MACD, there may be more momentum to power through the $19.38-level, which was their high from November 2021.

FCG’s technical growth over the last year has looked very consistent though.

EPU, an ETF that tracks Peruvian Equities has also been performing very well recently, reversing a months-long slide in August to recover most of its lost gains.

Their RSI is a bit rich at 76.5, which may lead to entry-points for new position or adding to existing positions as it begins to establish a new range after a period of high price growth.

How consistent their volume remains will be key in determining this, with positive, above average volumes being better than weaker volume & limited price movement.

XLP ETF tracks consumer staples stocks, and has also had a very strong performance this year.

XLP’s recent volume has been stronger than the year’s average & with a bearish MACD crossover taking place there may be some weakness to buy into in the near future as their RSI cools off from overbought levels.

Cannabis (TOKE), Moonshot Innovators (MOON), Gig Economy (GIGE) & China (PGJ) ETFs Are All Bearish Laggards

TOKE, the Cambria Cannabis ETF has had a tough 2021, losing over half of its price since February of last year.

While TOKE’s MACD trend looks like it could cross bearish soon, their RSI implies that there should be more strength to come.

Looking at their near & mid term moving averages, this could be ripe to reverse course in 2022.

MOON, an ETF that tracks moonshot innovators & related companies has also had a poor year.

Unfortunately, that looks to get worse in 2022 when we consider the rate hike path that so far has speculated 2-4+ hikes in interest rates this year.

RSI is oversold, but MACD implies more falling to come & their moving averages don’t seem to offer much help.

On less than average volume, this one may not be worth looking too deeply at just yet for a turnaround.

GIGE, an ETF that is tracking the Gig Economy has seen a steady falling since mid-February of 2021.

This is another one that you may want to sit tight on trying to find the bottom, as there isn’t much signaling that the losses are done just yet.

They’ve already gone into oversold RSI territory & continued to fall, so this one looks best to wait on trying to build a position.

Lastly, we look at PGJ, an ETF that tracks companies that receive large portions of their revenues from business with China.

PGJ looks to be trying to establish a bottom as we enter a new year, based on the 2021 lows.

With their 10 Day Moving Average & price even when I took the above screenshot, it is a step in the right direction.

A word of caution though, is their RSI is back up to almost 43 & trading volumes have been well above average recently.

People seem to be finding consensus that the past month’s range seems like fair pricing, but with so many variables at play it is tough to guess what’ll happen next week.

Tying It All Together

All-in-all there looks to be an exciting week ahead in the markets as we rumble into the 2022 trading year.

It’ll be interesting to see how data reported this week compares to previous periods, as there still seem to be a variety of responses by governments & businesses to omicron.

Inflation & supply chain issues are also another area of interest, as again these seem to vary greatly based on locations, both in the US & abroad.

Of course the question that is on all of our minds is, looking at the current technical status of the major indexes, when is the rug finally going to get pulled out from under this market?

*** I DO NOT OWN SHARES OF ANY TICKER MENTIONED IN THIS ARTICLE, WITH THE EXCEPTION OF A SMALL POSITION IN TOKE***

This week looks to start off on a slow note, pending any overnight news, with no US economic data being presented until PPI numbers Tuesday morning.

Import price levels will be interesting to see, especially given that ports are still backed up & going to unique unloading strategies to account for winter weather.

While ships will be using less fuel by traveling slower from Asia, there will be additional costs as many of these journeys are now 7-10 days longer than normal.

Wednesday also has the homebuilder index numbers, and the FOMC announcement, and Thursday will shed light into unemployment, housing starts, as well as manufacturing data such as the PMI.

Last week the NASDAQ gapped back up to around the levels it was at at the end of November.

Volume got back above the year’s average, but their MACD is still bearish/flattening out, with the 10 Day Moving Average just below the bottom range of Friday’s low price.

SPY looks to have more momentum, with a bullish MACD crossover last week on slightly above average volume, settling in for the week <1% off of all time highs.

However, it will be interesting to see if this climb can continue on into a Christmas rally.

US Home Construction (ITB), Rare Earth/Strategic Metals (REMX), Healthcare (CURE) & Consumer Goods (UGE) ETFs All Leading The Way Bullishly

US Home Construction ETF ITB is showing expectations that the homebuilder data this week will be good, as it continues its bullish climb.

Look for their RSI to drop a bit in the near-term, as it is currently overbought at 73.

Three of their last 4 sessions have closed lower than they opened, which is an interesting sentiment point, but their MACD looks strong still.

REMX, an ETF that tracks companies that produce, mine & refine rare earth & strategic metals has had a strong year.

While they’ve stalled out a bit in this current quarter, there may be a good entry point for a position in the near-future, with the 10 Day MA being bullishly crossed by their price level Friday.

CURE, the Direxion Daily Healthcare Bull 3X Shares ETF has had a strong year, including 7 consecutive days of gains.

With an RSI that is still relatively neutral/beginning to look overbought, there looks to be more near-term momentum for this & other similar names.

Their recent volumes have been slightly above average as well, with a bullish MACD crossover in the middle of last week also there to provide additional upward momentum.

UGE has also had a solid year, with a 44% increase excluding dividends.

While volumes recently have been low, their MACD appears to begin to be turning bullish, which paired with a neutral RSI could set them up for solid short-term momentum.

China Internet (CWEB), Physical Palladium (PALL), Fallen Knives (NIFE) & Emerging Market eCommerce (EWEB) ETFs Have All Lagged Bearishly

CWEB, the Direxion Daily CSI China Internet Index Bull 2X ETF has had a difficult year, losing ~75% of its share price in the last year.

Volume has increased substantially for CWEB since mid-summer, and there could be a change in price direction in the near-term, with a bullish MACD crossover impending, and an oversold RSI.

Physical Palladium names have also had a difficult year, with the end of November & early-December seeing more losses.

Two gaps down to end the last week looks like they may still have more pain in the near-term, however they have not fallen to the lows that they saw in late November, and have an oversold RSI.

NIFE is an ETF that tracks stocks that have recently fallen, but have strength in their financials that can make them rebound to outperformance.

What is interesting about NIFE is that they offer a 5.76% dividend yield, which is higher than most names that we cover in this section.

Their MACD is beginning to look healthier, but it is tough to say if this will be able to turn around in the near-term or not based on their overly light volume of recent.

They also tend to move in gaps up or down, which also makes it a bit speculative.

EWEB ETF is another under-performer for the year, which tracks emerging markets internet & eCommerce stocks.

Emerging markets have been an area of concern in many sectors this year, with EWEB’s holdings being no different.

This ETF may get some upward momentum in the near-term courtesy of their MACD about to crossover bullishly, and their RSI is oversold.

However, most of the last 4-5 months has been on extremely light trading volume when compared with the rest of the year’s chart, signaling that the sentiment there is still somewhat a “wait & see”.

Tying It All Together

This week will be interesting as markets will have a lot of data to digest, as well as updates related to COVID variants.

I will be most interested in seeing what types of trading volumes we see, with people beginning to prepare for the holidays, while also trimming gains or losses from 2021’s returns.

Overall, it looks to be an interesting week ahead.

*** I DO NOT OWN SHARES OR OPTIONS CONTRACTS FOR ANY OF THE ETFs LISTED ABOVE ***

Volatility began creeping back into financial markets this past week, just in time for some holiday discounts.

What is particularly interesting about it this time around though is that the levels of volume are far above average for the year, and above where they were in other, more recent volatile periods.

SSO, the ProShares Ultra S&P 500 ETF’s price settled below its 50 Day Moving Average, with an RSI of 42.

This shows there is still more pain to come in the near-term for the S&P 500, as concerns over omicrom, as well as the potential lockdown measures that will take to combat it hang over investors’ heads.

With much discussion about the rate of tapering & rate hikes via the Federal Reserve, the NASDAQ tech-heavy index also saw above average volume in their declines.

While their RSI also signals that there is more near-term losses to come, they closed just above their 50 Day Moving Average.

Still, traders should be on the lookout for the death cross that each index is inching closer & closer towards each passing day.

20+ Year Treasuries (TMF), Semiconductors (SOXL), Industrial Real Estate (INDS) & Technology (TECL) ETFs All Have Had Bullish Runs

TMF, an ETF that tracks 20+ Year Treasuries has enjoyed strong gains recently.

Their moving averages have begun signaling more bullishness is to come, although there may be some decent entry points in the near-term as their RSI will need to cool off while they establish a new price range.

Semiconductors have somewhat stalled out at their top range, as seen with SOXL ETF.

SOXL’s volume has remained about average, but with a now neutral RSI & continuing issues with supply, there may be more positive pressure on these names.

INDS ETF, which tracks industrial real estate has also been on a steady incline all year.

INDS’s recent volumes have also been above average for the year, as their RSI cools down from overbought conditions this last week.

Watch their MACD, which looks to be signaling more growth in the coming days as it begins to flatten/curve upwards.

TECL, the Direxion Daily Technology Bull 3X Shares ETF is cooling down with all of the talks of rate hikes & tapering, which may provide a decent entry point in the near-term.

Their RSI is now dipping into the oversold side, although they may have a bit more room to fall based on their MACD & elevated volume levels compared to the year’s averages.

Genomics (ARKG), Aerospace & Defense (DFEN), Betting & iGaming (BETZ) & Streaming Services (SUBZ) Are All Bearish & Lagging The Pack

ARKG, an ETF that seeks exposure to securities that are involved in genomics has been horribly lagging the market recently.

Their RSI is severely oversold, which may signal a coming rebound in the near-to-mid term.

However, like everything else, their volumes have recently been above average, signaling there will likely be more pain to come before the rebound.

DFEN ETF, which tracks aerospace & defense securities has also been underperforming.

They too have an oversold RSI & higher than average volume.

However, their MACD looks to be turning, which may prove to be a reversal from their recent decline in price after multiple gap down days in the last couple of weeks.

BETZ, the Roundhill Sports Betting & iGaming ETF is another one with a heavily oversold RSI.

What’s remarkable here is that nearly every day since the end of October their share price has continued to fall.

With an RSI of 16, they should at least be able to begin establishing a new range here, unless broader market volatility sends them deeper into descent.

SUBZ, the Roundhill Streaming Services & Technology ETF has also been facing difficulty since launching last February.

This is another name that has seen nearly all downward momentum over the last month, with an extremely oversold RSI.

They haven’t had much in terms of severe trading volume since they were first introduced to the market, which shows many investors are likely still weary of them & their holdings.

Tying It All Together

Next week looks to be interesting, as we await news about the omicron variant of COVID, as well as learn if there are more clues coming from the Federal Reserve about the expected taper pace.

Pending Home Sales, PMI Data & Unemployment Data will also be closely watched, after this week’s unemployment numbers left many folks scratching their heads.

Based on the technicals that we reviewed above, it looks like there will be a bit more volatility as we move closer to the end of 2021.

Earnings calls continued on throughout the week, and markets continued to climb steadily.

Upcoming news about the new Fed chair should be announced in the coming days, which may bring a temporary shock to stocks in the event that Powell is not selected again.

The S&P 500 & NASDAQ are both beginning to signal that there should be a bit of a shakeup in the near future when looking at their technicals

The SPXL ETF that tracks the S&P 500’s MACD had a bearish crossover, although on somewhat weaker than average volume last week, bringing their RSI back from overbought territory.

The NASDAQ tracking ETF TQQQ remains in overbought territory in their RSI, although their MACD has rebounded from what was potentially going to be a bearish crossover.

TQQQ’s volume has been a bit stronger than usual this week.

Consumer Discretionary (WANT), Carbon (KRBN), 5G Economy (WUGI) & Russell Growth Over Value (RWGV) All Lead The Pack

The WANT ETF that tracks names from the Consumer Discretionary sector has continued to see success, climbing higher this last week.

They look to have more steam to climb higher based on their MACD, however watch the currently overbought RSI as it may signal that there will be a bit of selling pressure in the near-term.

KRBN, a Global Carbon ETF has been trading on higher than average volume recently, and climbed to new highs for the year.

Again, while their MACD is still bullish, watch their RSI.

At 76, their RSI is still overbought & may indicate a bit of a sell off in the near-term as it begins to establish a new price range, where a better entry price may be possible.

WUGI, an ETF that contains names that are related to 5G & the future of the economy has also been climbing higher recently, although somewhat stalled out this week.

While their RSI was overbought prior & has now dropped back below the 70 level (highly overbought), there may be a bit of a drop in the near-term judging by their MACD.

Their volume has been very light compared to the rest of the year’s average.

Another area to keep an eye on is the growth names within the Russell 1000 index.

RWGV is an ETF that tracks these names, and has seen growth this year.

Their RSI is also high; at 74.7 signaling that they are currently overbought & may have some selling in the near-future.

However, their MACD is still bullish, after coming near a bearish crossover last week.

China (GXC), BioTech (LABU), Dividend Revenue (RDIV) & Global Infrastructure (GII) Stocks & ETFs Are All Lagging The Rest Of The Pack

It’s no surprise that companies in China are not being viewed favorably in the last few months.

GXC, the SPDR S&P China ETF has continued to struggle, having another bearish MACD crossover last week.

With a relatively neutral RSI, this downtrend may continue in the near-term.

LABU, an ETF that tracks biotech names has continued to fall, on higher than average volume.

Their RSI is approaching the oversold level, but their moving averages suggest that there is more pain to come in the near-future.

RDIV is another ETF that’s moving averages seem to suggest more trouble in the near-future.

Last week they had a bearish MACD crossover, and with a neutral RSI of 46 there looks to be more losses to come in the near-term.

Note too though that their volume has been very low recently compared to the rest of the year’s average.

However, they do offer a 4.77% dividend yield, which can provide some protection & cushion against losses.

GII, an ETF that tracks global infrastructure focused stocks & securities has also seen recent troubles, with a gap down on Friday that went below their 50 day moving average.

While their RSI is near the oversold level, their MACD is currently very bearish.

GII has also been trading on weaker than average volume recently.

Tying It All Together

There are still more earnings calls to come this week, there should be plenty of interesting swings in the markets.

With indexes near or at highs & showing overbought conditions, there should be some selling action in the near-term as traders take profits & reposition themselves for the new year.

However, the week will be shorter in observance of the Thanksgiving holiday in the US, which is something to take note of.

*** I DO NOT OWN SHARES OR OPTIONS FOR ANY OF THE NAMES LISTED ABOVE ***

Earnings calls continued last week, while focuses on bonds, energy & supply chains continued to tie up the news feeds.

A bit of the built up buying pressure was released from the S&P 500 & NASDAQ, both of whose RSI’s dipped back below overbought territory.

More correcting looks apparently based on the curves of both indexes’ MACD lines, shown in the charts below for the SPY & QQQ ETFs.

SPY, the S&P 500 ETF’s MACD is about to bearishly crossover, and QQQ’s for the NASDAQ is also bearishly curved, with the crossover to come in the coming days.

Given their high RSI’s, it is certainly time for a little more pullback from a technical perspective.

Transportation (TPOR), Blockchain & Data Transformation (BLOK), Lithium (LIT) & Financials (FAS) ETFs All Among The Bullish Recent Performers

Transportation stocks contained in the ETF TPOR all have had a good performing November to date.

While their MACD is about to bearishly cross, there looks to be a new range establishing here as their RSI evens out, possibly making space for a new position’s entry.

Volume has certainly tapered off after their major outperforming day.

Blockchain & Data Transformation stocks have also done well in recent weeks, earning BLOK a spot amongst our top rated ETFs by technicals recently.

Recent volumes have been above average for the year, as their share price evens back out after touching a new high for the year.

Another MACD to watch, but again, their RSI also needed to simmer a bit from being overbought for a period of days.

Lithium names have also been performing well, with more room to run in the near-term.

Watching LIT ETF’s MACD it appears that there may be another near-term bump in the making, as their RSI is still not in overbought territory.

Financial names have remained steady, although FAS has dipped a bit this week.

This may be a good point of entry into a new position for FAS.

With their MACD already bearish & an RSI approaching neutral, this looks to be a time where planning an entry will be beneficial as a trade or investment.

The recent price decline is on below average volume, implying that it is more centered around profit taking & not a major fundamental issue.

Asia Pacific High Yield Bond (KHYB), International Online Retail (XBUY), Yen (YCL) & South Korea (FLKR) ETFs Are Among The Most Bearish Names Recently

Not surprisingly, Asian High Yield bond ETF KHYB is underperforming recently amid the Evergrande scandal & news that other companies are in similar trouble.

Volume continues to trade above average for KHYB, with a neutral RSI & bullish MACD, but this is not a name that looks to be out of the woods just yet.

International Online Retail ETF XBUY has also suffered recent underperformance, making a new low for the year recently.

With a neutral RSI & relatively flat MACD this will be a name to watch, as it tries to break out above its 50 Day Moving Average.

Yen ETFs have also struggled recently, with YCL being one of the recent under-performers in our technical scans.

While YCL trading volume recently has been light compared to the rest of the year, there may be more pain in the near-term for this name based on the curve in their MACD.

YCL has been making higher lows & higher highs of recent, but is still trading at the bottom of its price range for the year.

Their RSI is slightly oversold though, which may signal an impending bounce.

FLKR, the South Korea focused ETF has also been having tough times recently, especially after a large decline last week.

Their MACD & RSI are both relatively neutral, and recent volumes have been below average for the year.

They still face downward pressure from their moving averages, but are showing signs of reversing course in the near-term.

Tying It All Togher

This will be another week of earnings calls, political theater & discussions about inflation & supply chains across the globe.

Based on the charts we’ve looked at, there may be more correcting of price levels in the near-term, with many technical indicators running hot at the moment.

Retail sales & housing starts numbers will be interesting to watch, with both of those industries being mentioned in our weekly lists recently.

It will also be interesting to see how seasonal employment begins to impact reported numbers, with mall Santas & Christmas-time help beginning to be hired.

After a week that was centered around earnings, the Fed announcements & climate discussions, stocks generally continued to climb higher.

With more earnings calls to come this week, it seems that we are positioned for more of the same market action.

Interestingly enough, both major indexes closed lower than they opened by the end of the day Friday, but still accomplished day over day gains (SSO & QLD pictured).

It will be interesting to see if that risk-off sentiment continues into next week & if investors will be interested in taking their gains & going home safely by the end of another earnings week.

Homebuilders & Supplies (NAIL), RoboCar Disruptors (VCAR), Pharmaceutical & Medical (PILL) & Basic Materials (UYM) Stocks & ETFs Leading The Charge

ETFs focused on homebuilders & their suppliers have been experiencing a bit of good fortune in the recent times, with NAIL, the Direxion Daily Homebuilders & Supplies Bull 3X Shares ETF continuing to climb higher.

Robotic Cars also continued to climb higher sharply this week, despite negative/uncertain news circulating about Workhorse WKHS stock, amongst other names in the space.

VCAR, the Simplify Volt RoboCar Disruption & Tech ETF saw much stronger volume than average, although their RSI is overbought, so there may be some near-term drops as a new price range is established.

It comes as no surprise that Pharmaceutical & Medical names have been having strength recently.

PILL, the Direxion Daily Pharmaceutical & Medical Bull 3X Shares ETF climbed higher this week on above average trading volume.

This is another one that is in overbought territory based on their RSI though, so investors may think to time an entry after they settle into a new range, instead of chasing the tail end of recent momentum.

Basic Materials stocks also have been experiencing strength in the last month.

UYM ETF, the ProShares Ultra Basic Materials ETF continued to climb higher, with above average volume on Friday’s gains.

However, I would be keeping an eye on their MACD that is beginning to turn over a bit, and also their 50 & 200 Day Moving Averages which are just over 1% apart from one another.

The MA’s should separate further in the coming days, but with a slightly overbought RSI this one may warrant buying some puts as well to be safe.

Of course, there are other ETFs out there that cover the same niches of the market, some of which may be better suited to your portfolio’s risk profile.

Emerging Markets Healthcare (KMED), Social Media (SOCL), Steel (SLX) & Short-SPAC (SOGU) ETFs Are All Lagging The Market Trends

Interestingly enough, while PILL has climbed, the KMED ETF has been lagging.

This is in-line with general sentiment around emerging markets at the moment, but does not align with the broader bullishness in the healthcare & pharmaceutical space.

Social Media companies have come under more fire & scrutiny than usual recently, leading to a dip in SOCL since mid-October.

Their volume has been lighter than average recently, with prices seeing stability in the $61-62 range, needing to be able to break out above $62 to reverse course.

With a relatively neutral RSI, SOCL could begin to climb again in the near-term, although I would be focusing on the relationship between the 10 & 50 Day Moving Averages before deciding an entry-point & consider also having some puts for protection from potential further price declines.

Another interesting lagger is SLX, the VanEck Vectors Steel ETF.

Despite builders, suppliers & basic materials names climbing, steel here is underperforming.

SLX is also trading on below average volume, with a slightly oversold RSI.

Lastly, the short-SPAC ETF SOGU has also been lagging, meaning that the 25 SPAC-names they track are outperforming or there is good sentiment behind them.

SOGU’s RSI is about to enter very-oversold territory, but there is limited data available on them as they began trading in May.

Tying It All Together

As mentioned prior, I try not to repeat names & sectors/industries week over week in order to cover the broadest amount of relevant information.

While ETFs are not perfect trackers of market sentiment, a lot can be inferred about specific areas of the broader markets by tracking their performance.

Given that we are still in earnings season, it is important to watch the technicals of these ETFs & how they move in relation to news about specific companies that are held in their basket.

It is also important to then check how much the % change is compared to the % of the basket that is held in each individual stock, as this may present opportunities to get in at better prices than the ETFs true, current value.

Entering the second to last month of the 2021, and markets look to be relying on decent-to-good earnings to continue climbing higher.

Volume Y-O-Y has gone down a bit, which makes sense as investors are stuck trying to figure out where we go next, where concerns over debt, continued corporate earnings growth, inflation, energy & supply chains & sitting on edge.

The 3x levered S&P 500’s UPRO ETF (above) is at record highs, while their NASDAQ counterpart TQQQ has more volume, but similar price stall-out at just above all-time highs.

While everything is still climbing, the RSI’s & MACD on the two above ETFs show that perhaps there is about to be some risk-off movement, as both RSIs are flirting with overbought territory & the MACD’s are beginning to curve more.

Technology (VCLO), Oil (UCO), Uranium (URA) & Semiconductor (USD) ETFs Are Performing Stronger Than The Pack

Technology, specifically the disruptive names in cloud computing & cyber security are performing well, with the VCLO ETF (below).

This looks like a time for investors to time a decent entry, as prices are slowing down while their RSI readjusts, and volume is above average.

With the current state of the energy markets, it is no surprise that oil is bullish, although it looks like the UCO ETF is showing some signs of slowing down its rapid recent growth.

This looks like a time where investors may get a decent entry point as their RSI is coming back down from overbought levels, and prices are expected to continue climbing.

URA, an ETF that tracks uranium also looks to be cooling off, with its RSI approaching neutral again, with higher than average volume for the year, creating an opportunity for entry.

Their 50 Day Moving-Average should provide support on the price to continue near-term growth.

USD ETF also looks healthy over the last year, especially with their more recent performance since September.

With an near overbought RSI, there may be some pullback that investors can use as an entry-point in the near-term, to catch some of their momentum.

BioTech (LABU), Education (EDUT), China Real Estate (CHIR) & ESports/Digital Entertainment (NERD) Are Lagging The Pack

LABU, an ETF that has 3x leveraged exposure to BioTech has been performing poorly this past year, but looks to potentially be reversing course & be an opportunity in the near-term for some growth.

EDUT, a global education ETF has had a difficult year, however, it may be able to reverse course if it can maintain above $10.88 & break above $11.02, as with an RSI that is signaling being oversold, there should be opportunity to reverse course.

It is no surprise that Chinese Real Estate is in some trouble at the moment, and the CHIR ETF agrees.

I think that there may be more pain to come, as there are still many relevant uncertainties, but for investors looking for exposure in the space, they offer a 6.47% dividend yield while you wait/to provide a cushion should they continue to decline.

The NERD ETF tracks Esports & Digital Entertainment & has also been having a tough go at it this year.

However, if they can stay above $26.28, they may reverse course in the near-term,with the RSI & MACD showing some more slight losses quickly, but their Moving Averages show signs of reversing.

Tying It All Together

Overall, it will be interesting to watch how the next week’s earnings calls come out, especially after Amazon’s & Apple’s this past week.

Broader indexes look ready to cool off a little bit, with high RSI’s on the S&P & NASDAQ leveraged ETFs, which should make for some good entry points for investors & volatility for traders.

Investors may be taking some profits here before the end of the year, which would mean more cash on the sidelines, and a shift into safer value names with more dividend yields.

*** I DO NOT OWN SHARES OR OPTIONS RELATED TO ANY OF THE NAMES MENTIONED ABOVE AS OF WRITING THIS ARTICLE ***