Effective, Tuesday, February 14th, 2012, ETF Trade Advisor’s Member’s Page will be revised to reflect our enhancements for 2012.
We have added two new ETFs to our timing list. They are as follows:
- SMH: The Semiconductor ETF. We feel strongly that Semiconductors are leading indicators for the turning points in the US equity market. In addition, during bull markets, the SMH gains are more than the overall market which gives us leverage for a higher rate of return.
- IWM: Most of you are probably familiar with this ETF which replicates the Russell 2000 index of small cap stocks. It also has higher gains during bullish trends than the overall market.
In addition please note the following important changes:
- We have added a new column called “Portfolio Allocation Percentage.” When we enter into a trade, we will now publish our recommended percentage of cash allocated to each ETF. This is based on the assumption that the overall portfolio should add up to a total of 100%.
- We have removed LQD, the high quality corporate bond ETF, from our page. Our reasoning is that there is no leverage for high return in this fund. Currently when we are long in the market we prefer to buy JNK (the high-yield bond ETF).
- We will not allocate a specific portfolio percentage to XIU (TSX 60 index). This ETF is strictly for our Canadian subscribers who must keep their funds in Canadian equities. We do not recommend our non-Canadian subscribers to trade this fund.
- We have removed the optional stop prices. Given the volatility of the markets these days and our approach to buying in the extreme fear and lows of the market, we will not be recommending stop prices at all. When it’s time to sell, we will just issue a sell signal.
- Lastly, we have divided our signal table into three distinct categories: Risk Asset ETFs (equities), Safe haven Assets (U.S. Treasuries ETF), and Cash
We feel that these changes should yield a higher rate of return for our subscribers as well as improve our daily communication. We welcome your feedback.