Exchange traded funds following U.S. stocks and gold were little changed Wednesday in premarket action as investors awaited the Federal Reserve’s Beige Book report on the economy.
Advisor sentiment rose in the latest week as bulls increased to 51.1% from 49.5% the prior week, according to newsletter service Investors Intelligence.
“Stocks started 2012 with a solid single-day advance and then avoided any sign of profit taking during consolidation sessions the remainder of last week,” Investors Intelligence said Wednesday. “Most newsletter editors are aware of historical stock market patterns and noted positively the gains around the Christmas holiday that extended through the start of January as further favorable signs. Index and medium term indicator charts all held existing bullish status with only some modest caution flags.”
The number of bulls was the highest since late April 2010.
“Readings above 55% are dangerous and bull market tops often include them as high as 60%,” according to the report. “However we are now approaching readings where bullish sentiment is a worry.”
The number of bears fell to 29.8% from 30.5% the previous week. Also, the spread between the bulls and bears rose to 21.3% in favor of bulls, up from 19% a week earlier.
Here are some of the top ETF stories making the rounds online this morning:
- Muni bond ETF declines after five-day rally. [Bloomberg]
- Favorite dividend ETFs for 2012. [Morningstar]
- Silver ETF jumps 3%, gold moves above 200-day average. [Barron’s]
Shameless plugs:
- PIMCO Total Return ETF to launch in March. [ETF Trends]
- ETF Chart of the Day: Regional Banks. [ETF Trends]
