Tuesday, September 28, 2010

Roubini: Risk of trade war between China and US has risen: ETFs

Nouriel Roubini has twitted that the risk of a trade war between China and the US has risen.
Risk of currency wars rising: US-China, China-Japan, Japan-Europe/US, etc. And currency wars eventually lead to trade wars 

about 12 hours ago  via Twittter for Blackberry

We track all chinese ETFs live here.

You can view Roubini's twitts here.

Thursday, September 23, 2010

Commodities set to rise: DBA ETF

Remember the crazy commodity prices and speculation of 2008? We may be headed form a repeat as 50% of Russia's potato crop was lost this year when the worst heatwave for half a century ravaged crops across the Black Sea region. Russia's wheat crisis will continue for a second year. This means that Russia will be buying world stocks.

Wheat prices have already risen 70% since June. DBA is the most popular ETF. We track all commodity ETfs live here.

The UN's Food and Agriculture Organisation's Chief says: "We had hoped things would calm down by September, but they haven't: more commodities are joining in,"

The UN also fears "a repeat of the price spike in 2008 that set off global food riots. Wheat prices are still far below the $13 peak they reached then, and the global stocks to use ratio is still "safe" at 22pc. However, the outlook is darkening". The Telegraph.

"It is not yet a crisis but things are precarious. If there is another bad year in Russia and Ukraine, this will leave us prone to shocks. All it takes then is one piece of bad news," he said.
Chris Weafer, Uralsib's chief economist, said Russia's wheat harvest will be near 60m tonnes this year, far short of the 75m consumed locally. The country has intervention stocks of 9.5m. "We think Russia faces shortfall of 17m tonnes and will have to import next year," he said."

"Moscow has already disrupted grain supplies by imposing an export ban until late 2011, but markets have not discounted the risk of Russia becoming a substantial importer."


"Ominously, a corn crunch is also creeping up on the world. Global stocks are at their lowest level for 37 years, at a stock to use ratio of 13pc. "This is getting extremely tight," said Mr Chandler, questioning whether the US should divert 36pc of its corn crop into ethanol for fuel.
Corn prices have jumped 40pc since June, reaching $5 a bushel. This was first blamed on lower US crop yields due to bad weather, but China has since revealed that it imported a record 432,000 tonnes in August."

Tuesday, September 21, 2010

Easy to manage good portfolios made of ETFs

Our readers interested in easy-to manage portfolios made of ETFs will enjoy this. INO has a report out, titled "Diversification Doesn't Work Portfolio". It covers 5 different ETFs and portfolios and discusses when diversification works. Access to report is free here.

"This in-depth report on diversification shows how one simple adjustment can easily open up the money spigots and turn the tables on Wall Street. It shows one simple adjustment can put your account in the black fast. This new solution which we reveal can turn your retirement account into the financial powerhouse that it deserves to be.

It includes a model portfolio that proves that diversification can work when it's done the right way. Using the Wall Street method of diversification you would have lost close to 30% of your money! In the “Global Strategy Portfolio” included in the report, you would have made a 23% return on your money during the exact same timeframe. The report shows you not only how to achieve these results, but we also share the rules that you need to follow in order to get the exact same results in half the time and with less risk."

Top 20 best performing ETFs

These are the top 29 best performing ETFs for the last 1 year (out of 1,000+ ETFs):

IIH (please click to receive by/sell alerts), Internet infrastructure,  is the spectacular one at +69.57%, followed closely by DRN, a 3X ETF on real estate, at +65%.

Monday, September 20, 2010

Why silver does better than gold; ETF with bullion

BNN did  a short report on an interesting silver ETF, SVR, which actually holds bullion. It explains why silver has had a better run than gold lately.

Watch video.

Tuesday, September 14, 2010

Japanese Yen ETF Will Hit new 15-year high today: new buy signal

The Yen rose overnight to a fresh new 15-year high, in spite of all the tough words coming from the Bank of Japan.

We can expect further currency moves., which not only are reflected on stock rices, but will of course cause a new high on the Japanese ETF FXY today.

24-hour chart on the Yen in USDs:

(please click to enlarge, chart is live from INO's tools)

This is the latest chart of the FXY, the Japanese Yen ETF:

Thursday, September 9, 2010

Canadian dollar jumps: straddles for FXC ETF

The Bank of Canada raised interest rates this week, to 1.0%. As a result, the Canadian dollar jumped.

Below are straddles for the corresponding ETF, FXC, currently trading at $96.38:

Note that we track all currency ETFs live as well.

Sunday, September 5, 2010

The Giant Machine That Will Rescue the 33 Miners in Chile

ECH is the ETF for Chile.

This video shows the giant Strata 950 machine that will drill a 700m deep, 66cm wide hole to rescue the 33 miners trapped in Copiapo, Chile (commentary in Spanish). The machine weighs 40 tons and was transported from a Codelco site by 7 trucks, in a 10h trip.

Saturday, September 4, 2010

Top 30 most oversold ETFs in the U.S

For investors interested in ETFs that are oversold in the short term, the following list shows the top 30 most oversold ones that trade in the U.S, out of more than 800.

The list uses a computed RSI (relative strength index) of all the ETFs and is then sorted by the daily value.

The top oversold ETFs are ZSL, SRS, and SMN (click for alerts).