Weekly ETF Rewind: Agriculture Now an ETF Leader

Nov. 1.10 | About: PowerShares DB (DBA)

By Jeff Pietsch

(Click Image to Enlarge/ ETF Rewind Glossary)
Click to enlarge

The major U.S. indices put in a flat week with the S&P 500 (NYSEARCA:SPY) finishing higher by +0.1%. Notable outliers, including Real Estate (IYR -1.9%), Midcap Growth (PWJ +2.3) and Agriculture (DBA +2.0), underscored the low volatility in their slight absolute magnitude.

Interestingly, Agriculture now represents the ten-month relative strength leader, followed closely by Precious Metals (NYSEARCA:DBP) – but there is no inflation, right?

Week Forty-Four of 2010 features national elections on top of an extremely busy economic reporting calendar, including a Wednesday Federal Open Market Committee (FOMC) rate decision and a monthly Friday Jobs Report, as follows:

Click to enlarge:

Click to enlarge

October Monthly Summary

October provided an odd and assorted mix of sluggish economic reports, generally strong third quarter earnings, positive low-volatility price action fueled at times by the prospect of further quantitative easing, and yet diverging breadth and momentum.

In the end, nevertheless, the bulls prevailed, leaving the S&P 500, Dow Jones Industrials and NASDAQ 100 cash indices markedly higher on the month by +3.69%, +3.06%, and +6.33%, respectively. This left the three major indices likewise higher on the year by+6.11%, +6.62%, and +14.20%, with style and sector performances provided below: (Click to enlarge)

Click to enlarge

The Style-Box was calculated using the following PowerShares™ ETFs: Small-Growth (PWT), Small-Value (PWY), Mid-Growth (PWJ), Mid-Value (PWP), Large-Growth (NYSEARCA:PWB), and Large-Value (NYSEARCA:PWV). The Sector-Ribbon was calculated using the following Select Sector SPDR™ ETFs: Materials (NYSEARCA:XLB), Industrials (NYSEARCA:XLI), Energy (NYSEARCA:XLE), Staples (NYSEARCA:XLP), Discretionary (NYSEARCA:XLY), Financials (NYSEARCA:XLF), Technology (NYSEARCA:XLK), and Healthcare (NYSEARCA:XLV). The Standard & Poors 500, Dow Jones Industrial Average and NASDAQ 100 may be traded through ETF proxies, including the SPY or IVV, DIA and QQQQ, respectively.

Disclaimer: Never investment advice