“When you get such a strong run and you couple that with it being at historical levels, then buyers are a little bit more wary of jumping in,” added Wayne Lin, fund manager at Legg Mason, in a Bloomberg article. “Equities are fairly valued, but we’ve had a very strong run and there is a question out there as to what’s going on more fundamentally.”
The top three unleveraged ETFs this week were iPath Cotton (NYSEArca: BAL), U.S. Natural Gas (NYSEArca: UNG) and Market Vectors Junior Gold Miners (NYSEArca: GDXJ) with gains of at least 5%.
The bottom three unleveraged ETFs this week were Guggenheim Global Solar Energy (NYSEArca: TAN), Guggenheim China Real Estate (NYSEArca: TAO) and Guggenheim China Small Cap (NYSEArca: HAO) with setbacks of over 5%.
In next week’s economic reports, look for housing data on homebuilder confidence, housing starts and existing home sales. Markets will also get the Federal Reserve announcement on Wednesday, followed by a press conference with Ben Bernanke.
iShares China FTSE China 25
Full disclosure: Tom Lydon’s clients own SPY.