Today's Key ETF Performances: Financials Lead, Commodities Lag

Today is the first time in awhile that the table below has been filled with mostly green up arrows for equity ETFs. As shown, over the last day, week and month, the majority of stock ETFs are up.

Today's gains were led by Financials, Consumer Discretionary, Telecom and Materials. Emerging markets were up sharply, with FXI up 7.5%, INP up 4.8%, Mexico up 4.6% and Brazil up 3.7%.

It's also the first time in awhile that commodities and fixed income ETFs are flashing red. Commodities were down across the board, and surprisingly, DBC, GLD and SLV are even now down over the last month.

click to enlarge

Comments

[bearfund]

Let's see...investments banks need to raise capital. Those who choose to do this by issuing more shares will benefit most if their share prices are high. They can borrow at 2.5% against mortgages that in most cases have defaulted or soon will. Now, let's see, what should they do?

I've got it: borrow heavily against worthless assets, buy futures in the morning market to put on a gap-open short squeeze, then buy each others' shares all day. Meanwhile, get the commodities exchanges to increase margin requirements and whisper to their desperate hedge fund clients that the Fed would really prefer their long positions there to be closed out so if they'd like to share in the benefits of access to the printing press then this would be a good time to do so. The hedgies dump hard assets and join the financials rally, the shorts get the shaft, the bankers go home winners, and the PPT get Black medals all 'round.

Can't prove it but I'd be shocked if most of this isn't happening. There is simply no rational explanation for news of another $19b write-down and an ISM reading still indicating contraction to be greeted by a 4% rally. I could believe the commodities sell-off is a response to "deleveraging" or recession fears, but then why such a large rally in equities, especially financials for which the fundamentals have not improved a whit? Nope, sorry. This is manipulation by the Fed, the Treasury, the PPT, and the banks. Simple as that.

[veeblefetzer]

Just more market volatility.

[Whisper On The Wind]

Two of those that went down also just gave (very respectable) dividends within the last day or so. Perhaps more. Maybe the ones that haven't are close to an ex-date? Grain of salt, gang.