Market Summary

As I have mentioned before on this blog the area between the 20 day moving average(blue line) and the 50 day moving average (red line) on an up trending chart is often a very good place to buy in at and go long as illustrated on the UWM chart below which was up 4.6% on Friday. The UWM is the double leveraged ETF that tracks the Russell 2000 small cap index which was the top performing index that I tracked for last year. I have a button on my blog called Major US Indices which illustrates how all the markets move more or less in concert and have found support between their respective blue and red lines. Click on the chart to enlarge.

I have in the past posted performance tables but will now for convenience sake only post the results of my performance studies as of this date. The top three ETFs in my list on YTD basis are: UCO, AGQ, and IYE. The top three ETFs in my list on a weekly basis are: UCO, USO, and AGQ. These are natural resource plays in energy and silver. Also note that the Basic Materials Sector is the current 6 months leader in performmance up 39.6%.

Market Summary

The chart below is a follow-up to my prior post on the ProShares Ultra Crude Oil ETF UCO. It is interesting to watch history play out in the middle east with unrest in that region causing a spike in the price of oil. From the late January low of 10.71 a quick jump in the price of oil followed the unrest in Egypt but gradually fell off as the news got out. It has been 14 price bars since my last post and a clear down wave can be seen from the 12.57 high that was made during the first few days of the unrest. Now a new up wave can be seen to have been started with the 10.34 low that was put in a few days ago. In fact, as I have mentioned before on this blog, markets have a way of turning direction on long 3 day weekends and I believe oil prices are headed higher. It appears UCO has support on its 200 day moving average (Red Line).With the unrest in Africa spreading, the risk premium in oil is increasing. The futures markets are pointing to a large gap open higher tomorrow. Click on chart to enlarge.

The performance table below shows the Ultra Dow 30 ETF DDM is up the most up 13.40% while UCO is down the most down -13.99% for the YTD period. Keep in mind these numbers can change quickly in a market correction. Of note, for the week, AGQ was up the most up 17.90% while only UCO was down for the week. Click on table to enlarge.