New ETF Book by Larry Connors - Click here to read more
| TradingMarkets.com
Technology led early while materials stocks remained weak on Friday. Financials also underperformed while energy-related stocks managed a modest rebound in many instances. Plus: More and more professionals are turning toward the corporate bond market, splitting the difference between stocks and cash. Below are two ways ETF traders and investors can get exposure to corporate debt.
Here are 7 ETFs You Need to Know for Monday.
Among the early leaders on Friday were technology stocks, particularly Oracle Corporation (ORCL | Quote | Chart | News | PowerRating) and Motorola Inc. (MOT | Quote | Chart | News | PowerRating). In addition to the most widely traded technology ETF, the Technology Select Sector SPDRS, XLK (XLK | Quote | Chart | News | PowerRating), traders and investors in ETFs looking for technology exposure can turn to exchange-traded funds such as the iShares Goldman Sachs Technology Index Fund, IGM (IGM | Quote | Chart | News | PowerRating).
Dramatically lower on Friday as of midday were stocks from the basic materials sector. Among the hardest hit equities were Weyerhauser Inc. (WY | Quote | Chart | News | PowerRating), which was down more than 6% as of noon Eastern. This encouraged selling in basic materials ETFs including both the Materials Select Sector SPDRS, XLB (XLB | Quote | Chart | News | PowerRating) and the iShares Dow Jones U.S. Basic Materials Sector Index Fund, IYM (IYM | Quote | Chart | News | PowerRating).
High yield bonds were the topic of CNBC's Fast Money Thursday evening, with a number of panelists suggesting that the Fed's decision to "chase investors out of cash" was creating risk/reward opportunities in high yield corporate debt. How can ETF traders and investors get a piece of the action? A few places to look include high yield bond exchange-traded funds such as the SPDR Lehman High Yield Bond ETF, JNK (JNK | Quote | Chart | News | PowerRating) and the iShares iBoxx High Yield Corporate Bond Fund, HYG (HYG | Quote | Chart | News | PowerRating), both of which have rallied in recent days.
Up for a fourth consecutive trading day were the Biotechnology HOLDRs, BBH (BBH | Quote | Chart | News | PowerRating). Among the biggest components in the BBH are Affymetrix Inc. (AFFX | Quote | Chart | News | PowerRating) and Genentech Inc. (DNA | Quote | Chart | News | PowerRating) which together make up more than 60% of the funds assets.
According to a recent report, eight out of ten securities traded are exchange-traded funds. Want to learn how to trade them? Click here to find out what traders are saying about Larry Connors' new book, Short Term Trading Strategies That Work: A Quantified Guide to Trading Stocks and ETFs!
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
