The Dow (DIA) has distanced itself from the other major index ETFs in the past week. While other large-cap ETFs like the S&P 100 (OEF) have dropped 0.23% and the Nasdaq (QQQ) is flat, DIA has managed to rise 0.5%. DIA is also the most overbought of all the major index ETFs, although like other large caps, it is less overbought than it was one week ago. On the other hand, mid-caps like the S&P MidCap 400 (MDY) and the Russell Mid-Cap (IJR) have actually moved higher within their trading ranges on small gains. At their current levels, the S&P MidCap 400 (MDY) and the Core S&P Mid-Cap (IJH) both have good timing scores in our Trend Analyzer.
Equity indices have not managed to see any sort of large move in the past week as each of the fourteen has gained or lost less than 1%. Meanwhile, the commodities space has been much more volatile. In particular, oil (USO) and energy in turn as seen through the DB Energy Fund (DBE) have gotten smashed over the past week. USO is down 7.89%, falling below the 50-DMA and moving towards oversold levels. Similarly, Nat. Gas (UNG) continues this year’s pain falling 4.79% further.
Contrary to the moves in energy markets, precious metals like silver (SLV) have been soaring. After lagging behind gold recently, the Silver Trust (SLV) has finally caught up with the yellow metal. SLV has risen 7.9% over the past week, the best gain of any commodity. Ironically, earlier in the week it was actually negative YTD but these gains over the past five days have brought it to a 5.3% YTD gain. But also with this surge, SLV is now extremely overbought sitting over 2 standard deviations above the 50-DMA. Gold ETFs on the other hand, while not seeing as large of a move, has also done well rising around 2.75%. Precious metals in general as seen through DB Precious Metals (DBP) have become extremely overbought.
Looking at the charts, yesterday’s strong session for precious metals led to a further breakout to 52-week highs across the board. While the DB Precious Metal Fund (DBP) and gold’s break out is above more recent resistance, silver’s 52-week high took out resistance from much earlier in the year. In reaching this new high, SLV’s chart makes it pretty evident as to just how rapid the move has been and the degree to which it is extended to the upside.