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The Chartman

A Peek at ETFs

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I guess the most ironic thing we’ve learned from the shutdown/debt crisis is that if we hadn’t read a single news item, we wouldn’t even know there WAS a crisis.

In fact, this points out the real value of technical analysis as it presents an objective view of what’s happening in the market.  And there we saw a pretty text-book pattern: an overbought market that pulled back to its uptrend line before bouncing!

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Over the years many people have been drawn to ETF’s as they’re an easy way to invest, while taking away a lot of the risk individual stocks present.

They also can open your eyes to what’s really happening in the market, and that drew me to MDY, which made an all-time closing high last week.  Clearly something good is happening to these stocks, and I think more good things are coming.

Keeping with the ETF theme, I thought I’d also look at crowd favorite QQQ.  It’s not quite as strong as MDY, but it’s getting there.  Be patient waiting for the breakout and I think you’ll be rewarded.

Back next week to see if all the strength I’m seeing is real.

What do you think?

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