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ETF Portfolio May 2 nd. 2011

Equities
Finally a trend, equities are bullish or neutral in most sectors and I have loaded up again. Most significant change from last week is that the weekly charts now confirm the daily chart trend. I would suggest that you are over allocated into equities at this point and consider loading up en lagging sectors like the Utilities (NYSEARCA:XLU).

Banking is still struggling, but they have their own problems and may not be joining the party at this point.

Major indicies have broken new multi month highs which seem to suggest we are heading for the old highs of 2007. Who would have thought that in march 2009? - Yet here were are.target in DAX i 8000 8100 and SP500 is 1500 - 1540. Breaks into new all time high levels would be a suprise.

No chages to positions this week.

Bonds
Little changed from last week. Still prefer inflation linked bonds to normal gov.

In many ways my charts are simular to the 1970 scenario and I am still convinced we will see high inflation at some point in the near future. One of the reasons why prices are not going up on many consumer items and thus showing up on headline inflation statistics is that the size of the package you buy is falling instead. Where you would get a kilo of rice - you now get 800 grams. Check it out!!


Commodities
Gold and Silver are still in a bullish pattern, but I am out. Resent volatility in SLV seem to suggest a high have set in and I expect we may soon see a severe correction. Maybe as the equity market gain more momentum over the summer.

Copper has turned negative again.

Volatility
Remain low and considering all the known risks against the market, it is hard to say what and when this will turn. I believe "sell in May" , is not a good strategy this year.