12 Feb

ETF Market Report February 2013: Long Term US Equity Buy Signals

At the end of January the SP-500, Dow Jones, and Russell 2000 indexes all managed to settle above key resistance thresholds that encompass over 10 years of historical activity. Because these buy signals are so recent they exist in a “fragile” state, and consequently February needs to make bullish headway; at least settling positive on the month. If so, then we can begin to make clear assumptions regarding the broader US stock market’s 3-5 year directional dynamic.

Yes, the underlying economy will seek its own course over the next several years, and may indeed lethargically plod along as it has the last several. Yet concerning the US stock market itself, we appear to be on the precipice of a secondary bull run that may carry us into later decade. The breadth and sustainability of this move may well duplicate that of the post-March 2009 bull run to present.

The beauty of growing ETF popularity presents any investor the opportunity to harness the longer-term bullish effects that these buy signals are implying.  As you’re probably already aware, all three of the indexes mentioned (SP-500, Dow Jones, and Russell 2000) find their equivalent counterparts in the growing universe of exchange traded products.  As they say, a picture is worth 10,000 words, and to spare you the need to read 20 pages of text I’ve created a video that illustrates and underscores the three buy signals mentioned above, both within the individual ETF’s as well as the underlying indexes to which they’re associated. The video is informative and gets right to the point; twleve minutes of time you’ll probably find worth spending.

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