ETF's Directional Vectors Chart

By: Richard_Shaw

In the physical world, movement has two key properties: Direction and Magnitude.  If we think of price patterns shown on charts in a physical world way, we can assign Direction and Magnitude to each chart.

In the table below, we show the UP, DN or FLAT Direction of the 5-week, 10-week, 20-week and 40-week simple moving average for each of 20 ETFs (Direction is evaluated based on the most recent three periods).  The Magnitude of the price, 5-week, 10-week and 20-week moving averages is evaluated in terms of whether they are greater than or less than the 40-week moving average.  Moving averages that are within 5% of the 40-week (either above or below) are labeled “Within 5%”.

The securities in the table represent a broad spectrum of asset categories from the fixed income and stock group, plus representation for real estate, commodities and the Dollar.

This type of information (as updated) could be helpful at times when media announcements of price movements up or down fail to put them into a larger perspective.  It could also be useful in conjunction with fundamental information when gauging whether to take a risk position in certain funds, or in guiding the legging-in process for those with cash wishing to scale into risk assets.

[securities in table image: TLT, TIP, MUB, LQD, JNK, BWX, EMB, VTI, VEA, EPP, EWJ, VWO, FXI, IFN, EWZ, VNQ, DBC, GLD, COSWF, UUP]

By Richard Shaw 
http://www.qvmgroup.com

Richard Shaw leads the QVM team as President of QVM Group. Richard has extensive investment industry experience including serving on the board of directors of two large investment management companies, including Aberdeen Asset Management (listed London Stock Exchange) and as a charter investor and director of Lending Tree ( download short professional profile ). He provides portfolio design and management services to individual and corporate clients. He also edits the QVM investment blog. His writings are generally republished by SeekingAlpha and Reuters and are linked to sites such as Kiplinger and Yahoo Finance and other sites. He is a 1970 graduate of Dartmouth College.

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Disclaimer: The above is a matter of opinion and is not intended as investment advice. Information and analysis above are derived from sources and utilizing methods believed reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Do your own due diligence.

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