Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

March ETF Trend Summary

|Includes: DIA, FXI, GDX, IWM, IYR, KWT, QQQ, SLV, SPDR S&P 500 Trust ETF (SPY), TAN, UNG, USO, XLU, XRT

We’re back again with a quick wrap-up of the major trends that drove the market in the final month of the 2010 Q1. It was the strongest month since November not to mention we saw a few reversals take place after the January and February ETF Trends took hold. (You can click on the images to enlarge)

Let’s first take a look at the big movers from countries to sectors to commodities:
  • Technology regained its dominance with the Qs (QQQQ) leading all four major indices (SPY, DIA & IWM)
  • Financials and Consumer Discretionary led in the US Sectors
  • Retail (NYSEARCA:XRT) and Real Estate (NYSEARCA:IYR) were most notable outperformers
  • Defensive sectors like Utilities (NYSEARCA:XLU) and Healthcare (NYSEARCA:XLV) underperformed
  • Asian markets started to show strength for first time in 2010
  • Gold (NYSEARCA:GLD) and Natural Gas (NYSEARCA:UNG) declined while Oil (NYSEARCA:USO) and Silver (NYSEARCA:SLV) lost ground

 ETF HEATMAP (March Performance) – Click to expand

New trends emerging: based on the YTD performance (2nd map below) and more recent trends here’s what we could see in April

  • As you can see, for the year the indices look identical to March (the bulls finally arrived 3 months into the year)
  • With China (NYSEARCA:FXI) still down for the year and just now starting to run we could see a strong bullish trend emerge
  • Energy (NYSEARCA:XLE) is a 2010 underperformer, but I’d expect this divergence to converge over the next several weeks
  • Global energy (TAN, FAN, KWT) would also benefit substantially from a broad based energy rally
  • Goldminers may be the value pick for April based on the group being one of the weakest and underperforming gold significantly
  • Commodities and Commodity based countries have

ETF HEATMAP (YTD)

 US Sector Percent Chart



Disclosure: Long EWZ (Brazil) at time of writing