XLE:XLF Broke Long Term Trend Line After I Ditched the Pair

I've ditched the long XLE / short XLF strategy one week ago and then XLE:XLF pair broke long term up trend line. It appears that my ETF ranking is also good at timing the market.

Sector Rank Spread Little Changed

Fundamentally Bullish, Sentimentally Bearish

Fundamentally now it is much better than 2008: there is enough liquidity in the financial system, and GDP is still growing. Even economists keep lowering their estimates on GDP, they still project growth. The problem is, the market is dominated by bearish sentiment. Many investors simply leave the market and stay on the sidelines. The only players in the market now are computer-driven momentum-chasing hedge funds. In the past two months, quant funds are the best performers in the hedge fund industry. If investors are indifferent and stay on the sidelines, nobody will stop the bearish momentum and we'll see new lows. Thus fundamentally I'm bullish, but sentimentally I'm bearish. I'll just stay with my strategy and enjoy the roller coaster.

External Publications - 9/20/2011

An article is published on SeekingAlpha.com today:

• New Solid State Drive ETNs Are Good Buy: Best investments are often found with solid fundamentals and creditable growth prospects. The newly incepted Solid State Drive ETNs are promising candidates.

External Publications - 9/19/2011

One article is published on SeekingAlphs.com today:

• Why The Technology Sector ETF XLK Is Riding High: The Technology SPDR ETF (XLK) is ranked at the top among sector ETFs and that indicates the economy is likely to expand on its own.

Sector Rank Spread Leaps Ahead, A New Economic Expansion At Gate

The Sector Rank Spread leaped ahead. Beside that, I see other evidences that a new economic expansion is emerging. I'm composing an article for that. Will publish on SeekingAlpha.com once done. Stay tuned.

Sector Rank Spread Sees Big Jump Again

The Sector Rank Spread sees a big jump again. The key driver for this change is a sudden 5-point drop of XLF's rank. I expect to see the expansion of SRS leads the market up from here.

Top 3 on SeekingAlpha

Now I'm ranked as the top 3 "Opinion Leader" for "ETF Long & Short Ideas" on SeekingAlpha.com. Just dumped screenshots as a reward to myself. My pen-name on SeekingAlpha.com is Diffusion.

External Publications - 9/8/2011

One article is published in SeekingAlpha.com today:

• Bet Against Unfounded Enthusiasm For Dividends - Pay More Attention To Quality: A company issuing dividends alone does not necessarily mean you should invest. The latest enthusiasm for dividends drove the iShares Dow Jones Select Dividend ETF (DVY) to an overvalued state.

Sector Rank Spread Is Flat

External Publications - 9/1/2011

One article published today on SeekingAlpha.com

• Why MOO Will Stage A Swift Rally: We see four reasons that the Market Vectors Agribusiness ETF (MOO) will stage a swift rally.