Remembrance and Rotation

I think we all remember exactly where were and what we were doing on that date, a day that will live in infamy (Thanks Franklin Roosevelt). I have been somewhat shocked by the Iranians declaring that the Holocaust  never happened. We must never forget. Take a moment today and remember: The horrific acts and where you were!

                 9/11/2001                                                             9/11/2014

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On Tuesday the 9th I posted a listing of the top and bottom 10 ETF’s so far in 2014. You can view that post HERE!  One of the characteristics missed by those that just follow the major averages, is the rotation that takes place.  Some great strategies are used by traders with patience, exploring and analyzing those on the bottom.

The rotation is perfectly evident in the chart above. Look at the bottom 10, down between .09% and 4.22% on a year to date basis. Now look at the next two columns returns in 2013 and 2012, even 2011.

Among the bottom 10, lowest return in 2013 – 37.3%, 2012 – 11%, 2011 –  -3% to 13.94%

Remember too this run was just U.S. Equity ETFs and did not include our other asset classes: Developed non-US, Emerging markets, real estate, commodities, and precious metals.

As an example let’s take a quick look at IWC – iShares Russel Micro cap ETF:

IWCThere are a few ways to look at this chart. First a long base since July of 2013, second a wedge. Which way will it break? That my friends is any ones guess at this point.

You could begin to accumulate and use the bottom of the base as your exit strategy or you could wait for a break out / Break down.

Talking Points and What Happens If Corporate Taxes Are Eliminated?:

Dollar May Drag Down Emerging Markets (Short Takes)
How and why to build a bond ladder (Fidelity)
Beguiled By Narrative (Robert Seawright)
Research: We’re Too Busy to Follow the Rules (HBR)
The Future Of Manufacturing As Told In Four Objects (Forbes)
America has 4.7 million job openings (CNN Money)
Commodities send worrying signal (FT)
American Stock Holdings at 18-Year Low (Yahoo)
The Virtues of Inactive Investing (Barron’s)
Corporations Aren’t Recruiting Enough Weirdos (Businessweek)
Almost no one believes the stock market will fall (MarketWatch)
A Look at the World’s First Water-Focused Hedge Fund (Climateer Investing
It’s Tim Cook’s Apple Now (Re/Code)
Don’t Take Your Vitamins (FiveThirtyEight)
Harvard is a real-estate venture and hedge-fund that happens to have a college attached (American Conservative)
Wall Street Bear Changes Course (Moneybeat)
Former World Leaders Call for Nations to Decriminalize Drug Use and Experiment With Legalization (Washington Post)

What Happens If Corporate Taxes Are Eliminated?

Have A Great Day!