Update on Commodity ETFs To Diversify From US Dollar

Commodity ETFs are great to diversify against the fall of the U.S. dollar.

Here are the RSI values for all commodity ETFs and ETNs on the market. Here they are, sorted for the short term and long term:

Short term, ordered from most oversold to most overbought:


(please click to enlarge)

The most oversold are JJG and GRU, both grains-oriented. The most overbought is sugar.

Long term, ordered from most oversold to most overbought:



Most oversold here are COW and DYY, livestock. Most overbought are UCD and UCI. UCD is a double long on the Dow Jones—UBS Commodity Index (a highly liquid and diversified benchmark that allows investors to track 19 commodities futures market). UCI is an Etracks linked to CMCI Total Return Index

Here are their names, in alphabetical order:



We track all commodity ETFs live here.

You may receive technical analysis and alerts of these ETFs and ETNs, sent automatically to you, by entering the symbols in the Technical Trend Analysis Tool, (powered by INO).

Currency ETFs update

Here is an updated view on the currency ETFs. RSI numbers were calculated on all currency ETFs on the market. This identifies those are that are oversold and overbought and may then be used as indicators for the top ETFs to buy and to sell.

Short term (RSI daily):

(please click to enlarge)

In the short term, some ETFs are extremely oversold: URR, EU, ERO, FXE, all related to long Euro positions. The overbought ETFs are DRR and EUO, both double short Euro.

Long Term:

Using longer timeframes, there are no oversold currencies, although EUO is getting close (interestingly, this one is overbought in the short term, as above). The Japanese Yen and Australian dollar are the most overbought ones.

Names and volumes

For your convenience, here are the names of these currency ETFs and average volumes:

Note that we track these ETFs live as one of our Tracking Live sites.

You may receive alerts of these currency ETFs sent automatically to you by entering the symbols in the Technical Trend Analysis Tool, (powered by INO).

Please do your own due dilligence.

Current oversold and overbought ETFs

There are over 770 ETFs on the U.S. market. Their RSI values give a very good indication of overbought and oversold levels. Here are the top 20 most overbought and most oversold.

You can receive free technical analysis and buy/sell alerts of these stocks for short, medium, amd long terms, sent automatically to you, by entering the ETF symbols in the Technical Trend Analysis Tool, (powered by INO).

Top 20 oversold in the short term (ordered by RSI 7 daily):




Note how the oil ETfs are short-term oversold (as of Dec 11 EOD).

Top 20 Overbought:



Note how utilities and bonds were overbought. Note the junk ETFs is there as well.


For convenience, here are their names and average volumes:





As always, please do your own due dilligence.

A new look at Dividend ETFs

Here are the dividend ETFs sorted by RSI7. This gives a very good indication of what to buy what to sell, depending on the desired specific timeframe.

Short term (RSI daily), from most oversold to most overbought:




Note that none are strictly oversold or overbought.

Long Term: (RSI monthly)



Again, none are overbought or oversold.

These are the ETF names and average trading volumes:




You may receive technical analysis and alerts of these stocks, sent automatically to you, by entering the symbols in the Technical Trend Analysis Tool, (powered by INO).

Please do your own due dilligence.

An ETF for the fight against global carbon

"These long overdue findings cement 2009's place in history as the year when the U.S. government began addressing the challenge of greenhouse-gas pollution and seizing the opportunity of clean-energy reform," said Lisa Jackson, EPA administrator.

The Environmental Protection Agency said today that greenhouse gases are a danger to public health, a decision that may lead to new emissions regulations, in the form of new emission standards for cars, while potentially opening up large emitters such as power plants, crude-oil refineries and chemical plants to limits on their output of carbon dioxide and other gases.

Regardless of whether you are believe in global warming or deny it, a potentially good way to profit from this decision is ghrough the Global Carbon Capture ETF, GRN. It is an iPath ETF, and it is up 6% today, but is done 6% YTD:





Note that we track all commodity ETFs live here.

As a bonus, GRN is uncorrelated to pretty much all other commodity ETFs on the maket. That is a huge plus for diversification, please see our previous article.

About GRN:



The Barclays Capital Global Carbon Index Total Return™ ("BGCITR") is designed to measure the performance of the most liquid carbon-related credit plans and is designed to be an industry benchmark for carbon investors. Each carbon-related credit plan included in the BGCITR is represented by the most liquid instrument available in the marketplace. The BGCITR expects to incorporate new carbon-related credit plans as they develop around the world. The BGCITR currently includes two carbon-related credit plans: European Union Emission Trading Scheme or EU ETS Phase II and Kyoto Protocol's Clean Development Mechanism.

A look at the best global currency ETFs

We computed the RSI values of all currency ETF and ETNs on the market, then sorted them by short and long time frames. Here they are:

Short term:

The two most oversold ETFs are XRU and CYB, the Ruble and Yuan. There are no overbought ETFs, but the most expensive ones, RSI-wise and with non-insignificant volume, are the double short Euro and the Mexican Peso.

Long term:



Note: we track all currency ETFs live as part of our live tracking sites.

Long term, the only oversold ETF is EUO, also a double short Euro. There are three overbought ETFs, ERO (long Euro), Swiss Franc, and Australian dollar. Interestingly, the currency that has appreciate the most this year, the Brazilian Rea,l is not near the most overbought ones.

For your convenience, here are the names of the ETFs and their average volumes:




You may receive technical analysis and alerts of these stocks, sent automatically to you, by entering the symbols in the Technical Trend Analysis Tool, (powered by INO).

Please do your own due dilligence.

A look at global ETFs for diversification

Correlations are known to be fundamental for diversification. In order to invest in multiple stocks or ETFs an investors always needs to look at how correlated they are. If they are highly correlated, there is no poinnt investing in more than one ETF. This is also true for global ETFs.

The chart below shows the correlations for most global/foreign ETFs on the market, for the period October 1st to November 30 2009. A value close to 1 or -1 indicates high correlation. A value close to 0 indicates no correlation.

Please click to enlarge.




For your convenience, these are the names of the ETFs.