Portfolio Theory $DBC $EEM $IWN $IYR $PLW
A weekly look at the five least correlated ETF’s.
Although oil made new lows, DBC has yet to do the same. If I see a X with volume, I may begin accumulating.
EEM is pulling back within an uptrend, and once I see a X, I’ll get on board with a stop below last weeks low.
IWN looks poised to break the downtrend and violate the upper Bollinger for a second time. Last weeks low is a critical boundary.
IYR needs to stay above last weeks lows, otherwise we will see a sell off across the board.
Even with the brouhaha this past week, PLW didn’t rise to new highs, which may signal waning momentum.
It is likely that equities from the Emerging Markets, Small Cap Value and Real Estate sectors will share a similar fate if they breach their weekly lows. If that should happen, PLW will continue to rise and DBC will probably fall some more. As always, stay flexible and manage your emotions.