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| U.S. Stock Market Update
For Week of May 13 to May 17, 2013 Anticipating An End To Quantitative Easing Preview from my weekly report: • Potential stock market risks outweigh potential rewards at this time. It is seems most prudent to reduce risks now while prices are elevated. • Investor confidence appears to be entirely based on faith in the Fed and other global monetary authorities continuing to flood the global financial system with ever more massive quantities of fiat currency created out of thin air and backed by nothing. • Debasement of fiat currency has limits, however. "Printing money" is neither a prudent nor a sustainable monetary policy. • The financial markets look ahead, attempting to anticipate future events. Markets soon may begin to anticipate an end to Quantitative Easing. When they do, a reversion to the mean may be swift and severe. That could mean a market shakeout or a crash. • Technical momentum indicators continue to show bearish divergences. Such divergences raise caution flags for the months ahead. • It is not a "new era" or a "new bull market" for stocks, as some of the fully-invested cheerleaders talking their position in the main stream media would have us believe. Stock prices have been rising for more than 4 years already, since March, 2009, so the bull market is getting "long in tooth". History shows that markets have always been cyclical, and major stock market price trends seldom last more than a few years before reversing. Bear markets naturally follow bull markets as night follows day. *For extensive coverage of major global markets with illustrative charts, take a free trial for my weekly report -- click here. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Analysis of market forces may offer a sense of probabilities. But the many variables that can impact market prices are notoriously difficult to predict. And, market analysis is something less than an exact science. So, sound trading tactics are always recommended. See my Money Management Rules. This Technical Analysis is made possible by use of MetaStock software. Try it at no risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Based on prices as of the close on Friday, April 29, 2011. 6.7-Year Outperformance by the Top 10 Exchange Traded Funds Weekly Rankings of Major Trend Relative Strength My weekly Top 10 ETFs ranked by the Major Trend Relative Strength outperformed the S&P 500 by 144 percentage points over a 6.7 years period of real-time weekly tests. Click here for a graph of simulated performance. Please note that my ETF rankings are available by subscription--NOW WITH A NO-RISK FREE TRIAL. See The Colby Global Markets Report (click here). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Simulated weekly performance of my Top 10 ETFs As shown below, my Top 10 ETFs, ranked each week by their relative strength, gained substantially more than the S&P 500 over a period of nearly 7 years, from August, 2004, to April, 2011, in simulation. Click here for a graph of simulated performance. To see my current rankings of hundreds of ETFs, with updated performance data, plus extensive coverage of major global markets with illustrative charts, take a free trial for my weekly report -- click here. According to CFTC Rule 4.41, hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown. My ETF Rankings are not investment advice. Rather, they are an objective ongoing research study. Date , S&P 500 , Top 10 8/20/04 , 100.00 , 100.00 8/27/04 , 100.86 , 101.91 9/3/04 , 101.39 , 101.90 9/11/04 , 102.33 , 103.88 9/17/04 , 102.75 , 104.31 9/24/04 , 101.07 , 106.78 10/1/04 , 103.02 , 106.69 10/8/04 , 102.17 , 110.18 10/15/04 , 100.90 , 111.75 10/22/04 , 99.76 , 109.37 10/29/04 , 102.90 , 110.15 11/5/04 , 106.17 , 111.23 11/12/04 , 107.81 , 114.52 11/19/04 , 106.55 , 117.46 11/26/04 , 107.68 , 116.81 12/3/04 , 108.45 , 120.65 12/10/04 , 108.16 , 122.30 12/17/04 , 108.73 , 118.70 12/24/04 , 110.18 , 120.94 12/31/04 , 110.34 , 122.56 1/7/05 , 108.00 , 124.27 1/14/05 , 107.85 , 117.64 1/22/05 , 106.33 , 118.28 1/28/05 , 106.65 , 115.88 2/4/05 , 109.53 , 118.24 2/11/05 , 109.74 , 122.17 2/18/05 , 109.40 , 124.41 2/26/05 , 110.29 , 127.46 3/4/05 , 111.27 , 132.68 3/11/05 , 109.26 , 134.14 3/18/05 , 108.31 , 129.62 3/25/05 , 106.65 , 127.85 4/1/05 , 106.79 , 122.68 4/8/05 , 107.54 , 125.70 4/15/05 , 104.03 , 125.41 4/22/05 , 104.90 , 118.40 4/29/05 , 105.33 , 121.41 5/6/05 , 106.65 , 119.85 5/13/05 , 105.07 , 121.51 5/20/05 , 108.28 , 116.64 5/27/05 , 109.14 , 120.80 6/4/05 , 108.89 , 121.63 6/10/05 , 109.08 , 122.76 6/17/05 , 110.80 , 123.09 6/24/05 , 108.49 , 128.50 7/1/05 , 108.75 , 125.38 7/9/05 , 110.33 , 127.64 7/15/05 , 111.80 , 129.40 7/22/05 , 112.32 , 129.44 7/29/05 , 112.37 , 133.01 8/5/05 , 111.66 , 134.40 8/12/05 , 112.02 , 135.66 8/19/05 , 111.05 , 138.84 8/26/05 , 109.72 , 134.34 9/2/05 , 110.90 , 134.72 9/10/05 , 113.03 , 142.25 9/16/05 , 112.71 , 145.58 9/23/05 , 110.65 , 145.65 9/30/05 , 111.88 , 146.84 10/7/05 , 108.88 , 150.57 10/14/05 , 108.03 , 141.26 10/21/05 , 107.40 , 137.12 10/28/05 , 109.11 , 134.34 11/4/05 , 111.09 , 136.69 11/11/05 , 112.42 , 142.53 11/18/05 , 113.65 , 143.84 11/25/05 , 115.47 , 145.81 12/2/05 , 115.18 , 149.02 12/9/05 , 114.66 , 150.54 12/16/05 , 115.38 , 151.02 12/23/05 , 115.51 , 149.72 12/31/05 , 113.65 , 152.29 1/7/06 , 117.03 , 151.09 1/13/06 , 117.23 , 161.86 1/21/06 , 114.85 , 162.81 1/27/06 , 116.88 , 161.57 2/3/06 , 115.08 , 166.78 2/10/06 , 115.35 , 162.81 2/17/06 , 117.20 , 160.41 2/25/06 , 117.40 , 162.62 3/3/06 , 117.20 , 163.95 3/10/06 , 116.67 , 163.37 3/17/06 , 119.02 , 154.31 3/24/06 , 118.63 , 161.00 3/31/06 , 117.89 , 160.19 4/7/06 , 117.95 , 161.40 4/14/06 , 117.37 , 164.56 4/21/06 , 119.39 , 164.21 4/28/06 , 119.33 , 173.62 5/5/06 , 120.70 , 172.42 5/12/06 , 117.56 , 180.23 5/19/06 , 115.36 , 174.52 5/26/06 , 116.55 , 162.11 6/3/06 , 117.29 , 159.42 6/9/06 , 114.02 , 159.68 6/16/06 , 113.95 , 148.42 6/23/06 , 113.31 , 145.56 6/30/06 , 115.65 , 146.29 7/7/06 , 115.22 , 153.11 7/14/06 , 112.55 , 152.15 7/21/06 , 112.92 , 150.84 7/28/06 , 116.41 , 154.93 8/4/06 , 116.48 , 157.29 8/11/06 , 115.33 , 154.55 8/18/06 , 118.57 , 154.44 8/25/06 , 117.91 , 152.05 9/1/06 , 119.36 , 154.35 9/9/06 , 118.26 , 150.73 9/15/06 , 120.15 , 153.02 9/22/06 , 119.71 , 153.19 9/29/06 , 121.62 , 154.84 10/6/06 , 122.87 , 156.44 10/13/06 , 124.33 , 159.77 10/20/06 , 124.61 , 159.84 10/27/06 , 125.40 , 161.04 11/3/06 , 124.21 , 159.49 11/10/06 , 125.72 , 163.29 11/17/06 , 127.57 , 165.07 11/24/06 , 127.55 , 167.50 12/1/06 , 127.16 , 166.09 12/8/06 , 128.36 , 168.66 12/15/06 , 129.93 , 170.28 12/22/06 , 128.44 , 165.79 12/29/06 , 129.13 , 171.22 1/5/07 , 128.35 , 166.88 1/12/07 , 130.26 , 168.24 1/19/07 , 130.24 , 168.95 1/26/07 , 129.48 , 169.36 2/2/07 , 131.87 , 172.69 2/9/07 , 130.93 , 174.36 2/16/07 , 132.52 , 176.28 2/23/07 , 132.12 , 175.58 3/2/07 , 126.30 , 159.04 3/9/07 , 127.67 , 162.61 3/16/07 , 126.28 , 160.79 3/23/07 , 130.75 , 169.15 3/30/07 , 129.36 , 169.59 4/6/07 , 131.45 , 176.16 4/13/07 , 132.28 , 179.67 4/20/07 , 135.14 , 182.01 4/27/07 , 136.03 , 181.21 5/4/07 , 137.08 , 184.23 5/11/07 , 137.10 , 184.71 5/18/07 , 138.64 , 187.36 5/25/07 , 138.00 , 186.33 6/1/07 , 139.88 , 192.19 6/8/07 , 137.27 , 185.55 6/15/07 , 139.56 , 192.92 6/22/07 , 136.80 , 192.29 6/29/07 , 136.87 , 190.20 7/6/07 , 139.34 , 199.72 7/13/07 , 141.35 , 205.39 7/20/07 , 139.67 , 203.16 7/27/07 , 132.83 , 189.93 8/3/07 , 130.47 , 184.58 8/10/07 , 132.35 , 182.79 8/17/07 , 131.65 , 172.13 8/24/07 , 134.69 , 182.28 8/31/07 , 134.20 , 185.84 9/7/07 , 132.34 , 182.92 9/14/07 , 135.13 , 189.73 9/21/07 , 138.91 , 201.08 9/28/07 , 139.00 , 207.07 10/5/07 , 141.81 , 217.06 10/12/07 , 142.20 , 222.48 10/19/07 , 136.63 , 213.36 10/26/07 , 139.78 , 227.40 11/2/07 , 137.45 , 226.57 11/9/07 , 132.35 , 212.38 11/16/07 , 132.81 , 209.55 11/23/07 , 131.17 , 202.27 11/30/07 , 134.85 , 206.12 12/7/07 , 136.99 , 211.39 12/14/07 , 133.65 , 200.62 12/21/07 , 135.15 , 205.20 12/28/07 , 134.61 , 205.02 1/4/08 , 128.52 , 198.75 1/11/08 , 127.56 , 200.50 1/18/08 , 120.65 , 188.83 1/25/08 , 121.15 , 187.64 2/1/08 , 127.05 , 181.90 2/8/08 , 121.21 , 181.09 2/15/08 , 122.91 , 181.77 2/22/08 , 124.11 , 188.08 2/29/08 , 121.15 , 192.12 3/7/08 , 117.76 , 193.50 3/14/08 , 117.28 , 195.18 3/20/08 , 121.05 , 180.69 3/28/08 , 119.75 , 182.06 4/4/08 , 124.77 , 181.64 4/11/08 , 121.35 , 182.30 4/18/08 , 126.58 , 191.34 4/25/08 , 127.27 , 189.58 5/2/08 , 128.73 , 187.80 5/9/08 , 126.40 , 193.58 5/16/08 , 129.77 , 201.96 5/23/08 , 125.27 , 200.26 5/30/08 , 127.50 , 202.73 6/6/08 , 123.88 , 205.04 6/13/08 , 123.82 , 203.44 6/20/08 , 119.99 , 204.08 6/27/08 , 116.39 , 204.55 7/3/08 , 114.98 , 198.71 7/11/08 , 112.85 , 198.77 7/18/08 , 114.78 , 189.17 7/25/08 , 114.51 , 188.02 8/1/08 , 114.75 , 192.91 8/8/08 , 118.02 , 184.91 8/15/08 , 118.20 , 186.17 8/22/08 , 117.65 , 182.27 8/29/08 , 116.80 , 179.79 9/5/08 , 113.11 , 176.60 9/12/08 , 113.96 , 174.92 9/19/08 , 114.27 , 174.93 9/26/08 , 110.46 , 172.47 10/3/08 , 100.08 , 190.50 10/9/08 , 82.84 , 232.08 10/17/08 , 85.63 , 217.04 10/24/08 , 79.83 , 237.28 10/31/08 , 88.20 , 203.12 11/7/08 , 84.76 , 211.90 11/14/08 , 79.51 , 226.64 11/21/08 , 72.84 , 249.02 11/28/08 , 81.60 , 217.64 12/5/08 , 79.76 , 220.06 12/12/08 , 80.10 , 216.07 12/19/08 , 80.84 , 215.21 12/26/08 , 79.46 , 218.49 1/2/09 , 84.84 , 200.77 1/9/09 , 81.06 , 204.82 1/16/09 , 77.40 , 213.16 1/23/09 , 75.75 , 216.12 1/30/09 , 75.19 , 215.69 2/6/09 , 79.08 , 200.81 2/13/09 , 75.28 , 212.89 2/20/09 , 70.11 , 231.70 2/27/09 , 66.93 , 239.07 3/6/09 , 62.22 , 258.45 3/13/09 , 68.88 , 227.97 3/20/09 , 69.97 , 225.01 3/27/09 , 74.29 , 205.49 4/3/09 , 76.71 , 197.61 4/10/09 , 77.99 , 196.66 4/17/09 , 79.17 , 195.55 4/24/09 , 78.87 , 195.64 5/1/09 , 79.89 , 193.41 5/8/09 , 84.60 , 196.64 5/15/09 , 80.38 , 185.68 5/22/09 , 80.76 , 186.97 5/29/09 , 83.68 , 195.85 6/5/09 , 85.59 , 197.89 6/12/09 , 86.15 , 196.71 6/19/09 , 83.87 , 187.50 6/26/09 , 83.66 , 188.93 7/3/09 , 81.62 , 185.32 7/10/09 , 80.04 , 179.40 7/17/09 , 85.62 , 193.37 7/24/09 , 89.16 , 204.04 7/31/09 , 89.91 , 204.36 8/7/09 , 92.00 , 206.18 8/14/09 , 91.42 , 204.49 8/21/09 , 93.42 , 205.40 8/28/09 , 93.68 , 205.62 9/4/09 , 92.54 , 202.80 9/11/09 , 94.94 , 209.05 9/18/09 , 97.26 , 215.33 9/25/09 , 95.09 , 209.01 10/2/09 , 93.34 , 202.00 10/9/09 , 97.55 , 215.16 10/16/09 , 99.03 , 218.66 10/23/09 , 98.29 , 215.23 10/30/09 , 94.34 , 198.32 11/6/09 , 97.36 , 207.43 11/13/09 , 99.56 , 213.90 11/20/09 , 99.37 , 210.53 11/27/09 , 99.38 , 210.24 12/4/09 , 100.69 , 214.97 12/11/09 , 100.73 , 210.86 12/18/09 , 100.38 , 207.62 12/24/09 , 102.56 , 214.83 12/31/09 , 101.53 , 212.11 1/8/10 , 104.25 , 219.35 1/15/10 , 103.43 , 213.49 1/22/10 , 99.40 , 201.27 1/29/10 , 97.77 , 195.18 2/5/10 , 97.07 , 189.12 2/12/10 , 97.92 , 195.11 2/19/10 , 100.99 , 202.11 2/26/10 , 100.56 , 201.77 3/5/10 , 103.67 , 212.78 3/12/10 , 104.70 , 217.95 3/19/10 , 105.60 , 216.72 3/26/10 , 106.21 , 218.54 4/1/10 , 107.26 , 221.41 4/9/10 , 108.74 , 226.29 4/16/10 , 108.54 , 221.56 4/23/10 , 110.83 , 227.97 4/30/10 , 108.04 , 220.60 5/7/10 , 101.14 , 200.18 5/14/10 , 103.40 , 207.57 5/21/10 , 99.03 , 194.24 5/28/10 , 99.19 , 198.39 6/4/10 , 96.95 , 189.53 6/11/10 , 99.39 , 198.22 6/18/10 , 101.74 , 204.88 6/25/10 , 98.03 , 200.18 7/2/10 , 93.10 , 191.66 7/9/10 , 98.14 , 196.67 7/16/10 , 96.95 , 193.62 7/23/10 , 100.39 , 200.03 7/30/10 , 100.30 , 203.07 8/6/10 , 102.12 , 205.67 8/13/10 , 98.26 , 199.30 8/20/10 , 97.57 , 202.81 8/27/10 , 96.93 , 203.20 9/3/10 , 100.56 , 209.21 9/10/10 , 101.02 , 208.86 9/17/10 , 102.48 , 213.36 9/24/10 , 104.58 , 217.65 10/1/10 , 104.36 , 223.19 10/8/10 , 106.08 , 226.22 10/15/10 , 107.09 , 229.40 10/22/10 , 107.71 , 227.62 10/29/10 , 107.73 , 227.75 11/5/10 , 111.61 , 239.24 11/12/10 , 109.18 , 231.09 11/19/10 , 109.23 , 232.80 11/26/10 , 108.29 , 225.87 12/3/10 , 111.50 , 236.59 12/10/10 , 112.93 , 236.79 12/23/10 , 114.42 , 236.51 12/31/10 , 114.50 , 237.96 1/7/11 , 115.76 , 232.37 1/14/11 , 117.74 , 237.13 1/21/11 , 116.84 , 227.91 1/28/11 , 116.21 , 231.01 2/4/11 , 119.35 , 239.79 2/11/11 , 121.01 , 242.73 2/18/11 , 122.28 , 250.91 2/25/11 , 120.17 , 250.04 3/4/11 , 120.28 , 255.93 3/11/11 , 118.75 , 245.10 3/18/11 , 116.47 , 243.54 3/25/11 , 119.62 , 255.41 4/8/11 , 120.92 , 264.69 4/15/11 , 120.15 , 258.72 4/22/11 , 121.76 , 266.10 4/29/11 , 124.15 , 268.62 Date , S&P 500 , Top 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Money Management Rules: At times of sudden rapid change it is particularly important to apply sound trading tactics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . My latest book was named one of the top investment books by Stock Trader's Almanac 2005. This book also received an excellent review in the November 2003 issue of Futures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . MetaStock® PC Software for Technical Analysis MetaStock® is a powerful technical analysis software program for your personal computer. It offers more than 200 built-in indicators and line studies to enable you to explore a wide variety of methods. And it empowers you to build, back test, and optimize custom trading systems to suit your own particular requirements. Click this link to save 9%-10% on MetaStock® software. Or, click the banner below for a one-month free trial.
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