ETF Review

As we head into the new week, let’s look at the most important ETFs.

The Dow Industrials ETF (DIA) is in a nearly perfect wedge. It has sustained its uptrend since March 30th, and the only slightly bearish setup is the price gap between Monday and Tuesday of last week which is still itnact.

The emerging markets have been weakening the past two weeks.

South Korea’s ETF (EWY) has double topped, and the dashed red line marks the most recent price gap. I am short this fund, as I am the DIA, above.

The China equity ETF (FXI) peaked, believe it or not, almost two decades ago. Recently, we’ve been in a downtrend for many, many weeks (since the pointless Xi/Trump summit) and last weeks’ bounce achieved nothing except to get it close to major resistance again.

Gold miners (GDX) are in a clear downtrend and have plenty of downside left.

The Bitcoin (BTC.X) fund (BITO) has an enormous topping pattern, and although I am short this as well, I have a very tight stop.

The small caps (IWM) have also been in a wedge for months, and on Wednesday the price actually chipped away at the lower trendline. We’d want to see a close below the trendline in order to consider this wedge broken.

The semiconductor fund (SMH) has pushed back into its multi-month ascending channel, and its most plausible downside would be the lower trendline of the same channel.

The S&P 500 fund (SPY) might, I’m sorry to say, be pushing above its pattern and most likely is going to prove itself to be nothing more than a continuation pattern.

Lastly, the oil and gas producers (XOP) are, in spite of the war with Iran, beneath a well-formed right triangle top. It would take a significant ratcheting-up of hostilities with Iran to get prices back into this pattern.