ETFs for a Tough September

With yesterday's move, we suspect that the market will drive back into negative territory. Our new short term market thesis is for for a tough September. Third quarter earnings could get dicey. iShares iBoxx $ High Yield Corporate Bond Fund (HYG), the high yield ETF, seems to be performing well during this market volatility. PowerShares DB G10 Currency Harvest Fund (DBV) seems to be moving back down with the rotation in and out of the carry trade. We did not have the opportunity to take the 1% position, since it was up 1.5% the following day. We will continue to eye DBV for a potential entry.