TrendLeaders paint depressing picture of a bear market --
This week we have 61 stocks and ETFs on the list. The total number has been declining steadily over the last few weeks. The nature of the securities comprising this week's list show how badly stocks in general are performing - more than half of our Trend Leaders are inverse ETFs.
Not only do we have a bunch of the usual ProShares ETFs on the list but we see that the Direxion Bear 3X ETFs are well represented as are a number of Rydex Inverse 2X ETFs.
Here is the list of inverse ETFs. Prices are as of the close last Friday; I suspect they are all up nicely after today's market rout.
|BGZ||Direxion Large Cap Bear 3X Shares||90.58|
|DOG||ProShares Short Dow30||83.03|
|DPK||Developed Markets Bear 3x Shares||106.53|
|DXD||ProShares UltraShort Dow30||77.09|
|EFU||ProShares UltraShort MSCI EAFE||135.18|
|EFZ||ProShares Short MSCI EAFE||105.7|
|EWV||ProShares UltraShort MSCI Japan||105.716|
|MWN||Direxion Mid Cap Bear 3X Shares||94.01|
|MYY||ProShares Short MidCap400||79.145|
|MZZ||ProShares UltraShort MidCap400||75.46|
|PSQ||ProShares Short QQQ||77.34|
|QID||ProShares UltraShort QQQ||62.65|
|RFN||Rydex Inverse 2x S&P Select Sector Financial||58.331|
|RHO||Rydex Inverse 2x S&P Select Sector Health||69.97|
|RRZ||Rydex Inverse 2x Russell 2000||131.06|
|RSW||Rydex Inverse 2x S&P 500||158.97|
|RWM||ProShares Short Russell2000||80.73|
|RXD||ProShares UltraShort Health Care||74.04|
|SCC||ProShares UltraShort Consumer Services||108.68|
|SDD||ProShares UltraShort SmallCap600||95.26|
|SDK||ProShares UltraShort Russell MidCap Growth||93.22|
|SDS||ProShares UltraShort S&P500||98.72|
|SFK||ProShares UltraShort Russell1000 Growth||97.77|
|SH||ProShares Short S&P500||85.95|
|SIJ||ProShares UltraShort Industrials||89.55|
|SJF||ProShares UltraShort Russell1000 Value||160.73|
|SJH||ProShares UltraShort Russell2000 Value||104.46|
|SJL||ProShares UltraShort Russell MidCap Value||117.71|
|SKF||ProShares UltraShort Financials||177.85|
|SKK||ProShares UltraShort Russell2000 Growth||84.21|
|SZK||ProShares UltraShort Consumer Goods||99.07|
|TWM||ProShares UltraShort Russell2000||91.91|
|TZA||Direxion Small Cap Bear 3X Shares||80.5|
A few stocks still fight the bear --
What other stocks complete this picture of the bear?
Well, there are several gold stocks, for example: Gammon Gold (GRS), Central Gold Trust (GTU) and Seabridge Gold (SA). With the whole stock market and gold itself down today, these stocks all took a hit; nevertheless, their charts are still looking a lot more attractive than most.
There has been much written about people "trading down" and shopping at Walmart. It appears the same thing is taking place with respect to food. Dinner at fancy restaurants is out but pizza is in. Take a look at Papa John's (PZZA) - they were one of the few stocks to register a gain today.
Italians have always known that pasta helps stretch the food budget. Perhaps that explains why American Italian Pasta Company (AIPC) is doing well lately.
Finally, special situations always get investor attention. As a result, Genentech (DNA), the object of a takeover bid, is on the list. Unfortunately, the stock plunged 4.6% today and fell below its 50-day and 200-day moving averages. Perhaps investors were betting that Roche will not be able to accomplish their buyout of DNA.
The bear, it seems, is firmly charge again. Our TrendLeaders list started out with a couple of hundred stocks and only a few ETFs. Now the list is dominated by inverse ETFs and a dwindling number of stocks that fit the recessionary mood.
There have been a number of blog posts that suggested that when inverse ETFs become especially popular it is a sign of a market bottom. Lately, though, the market looks bottomless. This is a situation only a contrarian could love.