January is the time for the State of the Union address; what about the state of the exchange traded funds (ETFs)?
That state so far appears to be, in a word, rocky. Bob Pisani for Trader Talk has a few points about ETFs and investments. He notes that TrimTabs shows investors pulled out $10 billion from U.S. equity funds over the first four trading days of 2008. An additional $12.1 billion was taken out of ETFs specifically. Compare this to last May when $8.4 billion was pulled out – that’s the total for the whole month. In the first four days of 2008, $22.1 billion was taken out.
Ouch.
All sorts of technical signals are going off. Richard Russell at Dow Theory Letter said to Pisani that a bear market is confirmed, as the Dow Industrials broke below November 21 lows.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.