(Editor’s Note: Mr. Vialoux is scheduled to appear on BNN Television tomorrow (Wednesday) at 7:00 PM).

7:00 AM EST: Encouraging overnight markets suggest that now is the time to make at least small initial purchases in the U.S. Materials, Mines & Metals and U.S. Oil Service sectors. See below for additional comments.

Technical Action Yesterday

Technical action by S&P 500 stocks was nil yesterday. No S&P 500 stocks broke support or resistance. The Up/Down ratio was unchanged at (311/107=) 2.91.

Technical action by TSX Composite stocks was quiet. No TSX stocks broke resistance and two stocks broke support (Cominar REIT and Equinox Minerals). The Up/Down ratio slipped from 2.63 to (133/53=) 2.51.

Interesting Charts

Interesting technical action is selected sectors yesterday! One day does not make a trend, but yesterday saw the first signs of positive technical evidence of a short term and possibly a medium term bottom. Strength was notable in the energy and materials sectors (including the metals & mining subsector within the materials sector). Their prices rebounded strongly, they significantly outperformed the S&P 500 Index, they saw their RSI recover from the 30% level and they recorded a gain by Stochastics from below the 20% level (but not a buy signal). Was strength yesterday a “one day wonder” triggered by short covering from a deeply oversold level or was it the shot from the “starting gun” for a series of seasonal trades? Energy, Mines & Metals and Materials sectors are at or near the time when seasonal influences turn positive. The answer is “I don’t know!” Not enough data is available. However, interest has been alerted. Stay tuned!

Chart courtesy of StockCharts.com www.stockcharts.com

Chart courtesy of StockCharts.com www.stockcharts.com

Chart courtesy of StockCharts.com www.stockcharts.com

Chart courtesy of StockCharts.com www.stockcharts.com

Weekly Relative Strength Review of Sector SPDRs

(Since the seasonal U.S. equity index entry point on November 5^th)

Changes this week included:

• Continuing weakness in the technology sector. Performance relative to the S&P 500 Index since November 5^th has changed from positive to negative.
• Strong recoveries in three sectors: materials, energy and financial services.

Following are the charts:

Chart courtesy of StockCharts.com www.stockcharts.com

Chart courtesy of StockCharts.com www.stockcharts.com

Chart courtesy of StockCharts.com www.stockcharts.com

Chart courtesy of StockCharts.com www.stockcharts.com

Chart courtesy of StockCharts.com www.stockcharts.com

Chart courtesy of StockCharts.com www.stockcharts.com

Chart courtesy of StockCharts.com www.stockcharts.com

Chart courtesy of StockCharts.com www.stockcharts.com

Chart courtesy of StockCharts.com www.stockcharts.com

ETF News

Last But Not Least: Fidelity Points to ETF Launch

January 28, 2010 at 2:38 pm by ETF.com

Mutual fund titan Fidelity Investments has indicated that it may soon launch a variety of exchange-traded funds. The company would be the last of the major mutual fund companies to enter the ETF business.

Statements from Roger Lawson, the number two executive at Fidelity, implied the company may launch a range of ETFs similar to its Fidelity Select mutual funds. Fidelity Select funds track individual sectors for mutual fund investors, The Street reports.

Since 2007, Fidelity mutual funds have lost $15 billion in assets, while ETFs assets have more than doubled to $1 trillion globally. Whether or not Fidelity will be able to garner enough assets is questionable, as the number of sector specific funds continues to grow, and other mutual fund names have already cornered much of the market.

First Trust Files for Three Commodity and BICK Funds

January 28, 2010 at 2:30 pm by ETF.com

First Trust has filed with the SEC to create three new funds – two commodities and one emerging market – that will seek to latch onto the growing market for the two asset classes.

First Trust filed for the following three ETFs with the SEC:

1. First Trust BICK Index Fund

2. First Trust ISE Global Copper Index Fund

3. First Trust ISE Global Platinum Index Fund

The First Trust BICK Index Fund (BICK) is a play on the commonly associated growth countries: Brazil, Russia, India and China. However, the ETF will exclude Russia in favor of South Korea, according to the SEC filing. The fund will equally weigh each country with 25% of the portfolio.

The First Trust ISE Global Copper Index Fund and First Trust ISE Global Platinum Index Fund will track firms involved in mining, exploration, and refining copper and platinum. The platinum fund will be expanded to include companies involved in similar metals, such as palladium, osmium, iridium, ruthenium and rhodium. Each fund will trade with a .70% annual fee.

S&P 500 ETFs to Add Berkshire Hathaway

January 28, 2010 at 2:22 pm by ETF.com

ETF investors will soon find a little more Buffett in their portfolio; Warren Buffett that is. Warren Buffett’s investment giant Berkshire Hathaway is slated to replace Burlington Northern in the S&P500.

Berkshire Hathaway will join the S&P500 to replace the firm it recently purchased, railway powerhouse Burlington Northern, MarketWatch reports. Exchange-traded funds tracking the index will also adjust accordingly, giving investors a small but significant holding in Berkshire Hathaway, which owns a myriad of businesses, but most notably in insurance.

Rumors circulated that Berkshire Hathaway would join the S&P500 following a vote by shareholders for a 50:1 stock split. Warren Buffett is often credited with the title of the world’s best investor after turning a $100 investment into his partnership into more than $40 billion.

Platinum Fund Holdings Double in One Week

January 26, 2010 at 10:17 am by ETF.com

In just one week, ETF Securities has doubled the assets of its two newly launched platinum and palladium funds. 2009 was the year of the emerging markets, but will 2010 be the year for metals?

The platinum fund now holds a grand total of 164,874 ounces, and the palladium offering holds 279,956 ounces, twice the holdings of the week prior. On Friday alone, ETFS Platinum ETF (PPLT: Quote, Profile, Advanced Chart, News) added 10% in market cap due to new inflows, while the ETFS Palladium Fund (PALL: Quote, Profile, Advanced Chart, News) grew by 33% the same day, Reuters reports.

Auto sales, which represent the largest industrial application for the metals, are well off their highs, but new investment demand has sent platinum reeling 5% in just the first 25 days of the year. Palladium followed suit with a 7% year-to-date gain.

PowerShares Vies for Small Cap Domination

January 20, 2010 at 2:37 pm by ETF.com

PowerShares has filed to create 10 new small cap ETFs to take advantage of extreme investor demand for niche industry ETFs. Small cap stock funds have been in heavy demand, with investors betting small names will outperform larger companies in a year of recovery.

The ten new proposed funds are as follows:

1. PowerShares S&P SmallCap Consumer Discretionary Portfolio

2. PowerShares S&P SmallCap Consumer Staples Portfolio

3. PowerShares S&P SmallCap Energy Portfolio

4. PowerShares S&P SmallCap Financials Portfolio

5. PowerShares S&P SmallCap Health Care Portfolio

6. PowerShares S&P SmallCap Industrials Portfolio

7. PowerShares S&P SmallCap Information Technology Portfolio

8. PowerShares S&P SmallCap Materials Portfolio

9. PowerShares S&P SmallCap Telecommunication Services Portfolio

10. PowerShares S&P SmallCap Utilities Portfolio

Each fund is comprised of a smaller composite of stocks generated from the S&P SmallCap 600 Index, and each stock will have a market cap of $250 million to $1.2 billion, according to the SEC filing. Included companies must also have at least 50% ownership divested in the general public.

Geo-specific small-cap funds have found incredible success with investors; however, few issuers have targeted specific industries. No annual fees or ticker symbols were disclosed in the prospectus.

iShares Unveils Mainland China ETFs

01-29-2010 | Source: emii.com

iShares is introducing a series of ETFs for global investors to tap the mainland Chinese market, MENA FN reports. The new offerings, which are based on CSI indexes, will enable broader access to large and mid-cap China A-Shares, with companies incorporated in mainland China.

The ETFs include the iShares CSI A-Share Energy Index ETF, Financials Index ETF, iShares CSI A-Share Infrastructure Index ETF, iShares CSI A-Share Materials Index ETF and iShares CSI 300 A-Share Index ETF. So far, only Qualified Foreign Institutional Investors or Mainland China residents were able to directly invest in the China A-Share market.

Adrienne Toghraie’s Trader’s Coach Column

Trader Surgery
By Adrienne Toghraie, Trader’s Coach

www.TradingOnTarget.com

It has been said by those who have witnessed them that there are surgeons who with their bare hands enter the body and take out any part that is not functioning well. Since the only one I know of who has witnessed this kind of operation is Shirley MacLaine, I will believe it when I see it. What if they could do surgery on you to pull out all the parts that hold you back from being a top trader? Keep in mind all backs have a front, so the positive side of the part removed will also go with it.

What kind of surgery is right for you?

Risk Adverse Part

Vincent has wanted to give up his engineering job for the last ten years. He has been an exceptional investor in that he has brought home twenty percent a year on his account. His investments have allowed Vincent and his wife to put away sixty thousand dollars in their retirement account. But even if they lived on his earnings, it would not be enough to afford a six thousand dollar a month life style. Vincent recently has put together a day trading system that he has clocked in at earning one hundred percent in simulation. With these results, his wife urged him to take a leave of absence from his job. Vincent said to his wife that simulation is not real trading, and even if he could earn that percentage, it would be taking too much risk to lose his engineering income in this economy.

Based on Vincent’s results in the current job market situation would you have him take out that part of him that is risk adverse?

Gambler Part

From the time that Ronny was a kid he would bet his friends on everything. In the beginning he learned a hard lesson when his piggy bank emptied with bets that had very little hopes of winning. Ronny changed his strategy over the years and learned to bet on things that would more likely favor him. When Ronny became an adult he wagered with his friends that he would marry the most gifted and beautiful young lady in town and did. He also bet them that he would be a millionaire by the age of thirty, and he accomplished that several times over. Along the way, however, Ronny went bankrupt once and almost had a nervous breakdown in the process. When Ronny’s chain of photo copying businesses was doing well, he turned the management part of the business over to his brother-in-law. Ronny had discovered trading and knew that he wanted to put all his attention towards becoming a top trader.

At first Ronny did everything right in getting an education, specializing and having a winning strategy, but he was never satisfied. He began to tinker with his strategy. The profits he earned were never enough even though his strategy was giving him predicted results. When he started to take more risk, he began to lose a great deal of money. In the meantime, the photo copying chain was also being threatened by the digital world.

Should the gambling part of Ronny be cut out? One has to remember that was the part that made him successful in the first place.

Saboteur Part

In my estimation Bill was one of the most talented people I ever met. He called me up recently and said that he has sabotaged his life away and wanted to know if I could cut out the sabotage part of him. Hence, this article. I then recounted a fraction of his successes to him, which on the whole would be too many to mention. He then said, “But Yes” and then detailed all of his so-called failures. I raised him with more successes, and he countered with more failures for the next half hour. I then asked him why he did not trade since I knew he was able to bring in exceptional results. “It’s boring,” he said. We went though other possibilities based on his talents, which would require him to move, work at a company behind a desk and various other changes in his life. He nixed them all. So I summarized, “You want to do something challenging, make zillions of dollars with very little or no investment and effort.” BINGO I got it.

If we surgerized the saboteur part of Bill, I do not believe he would have had the incredible life that he has enjoyed. A footnote: Bill will be calling me within six months excitedly talking about his next business project that promises billions. If not, he will most likely go back to trading for a while so that there will not be a dip in his incredible life-style. Poor Bill. And there I would place my bet with Ronny.

All Parts of You Are Important

All parts of you are there to support you in your life. No one can or should try to remove a dysfunctioning psychological part. However, transforming a part of your behavior towards receiving a positive outcome is vital in successful trading. For example, in the case of Vincent, he will never be a successful trader if he is not willing to transform his risk adverse nature to someone who is willing to take a risk on himself and his ability. Ronny, the gambler, has to do what professional gamblers do and learn to take calculated risk in his trading and business to bring him the most amount of success and leave the adrenalin rush behind. And then there is poor Bill, who needs to start counting his blessings and changing his stories so that he will appreciate and nurture opportunity when it comes his way.

FREE Online Webinar Wednesday
Adrienne Toghraie Presents
Understanding & Overcoming Losses Webinar
Wednesday – February 3 – 4:30 P.M. EST
Registration URL: http://tradingontarget.omnovia.com/registration/pid=68291263585374

FREE Upcoming Workshops in New York City

Adrienne Toghraie Presents
Overcoming Sabotage Traps Workshop
Thursday – February 11 – 5:30 P.M. EST
http://www.meetup.com/NYCPrivateInvestors/calendar/12431797/

Adrienne Toghraie Presents
Recognizing Sabotage Traps Workshop
Monday – February 15 – 1:30-2:30 P.M. EST
At the Trader Expo February 14 – 17 – Marriott Marquis Time Square
To register – www.TradersExpo.com

Keith Richards’ Blog

Keith says “Time to change your oil”. Following is a link to his blog:

www.smartbounce.ca

Thackray’s 2010 Investor’s Guide

Tech Talk frequently mentions Brooke Thackray and his book entitled, “Thackray’s 2010 Investor’s Guide”. The book summarizes attractive seasonal trades that are available during the year. The book can be purchased directly at Amazon.ca and Amazon.com. Following are links to these book stores:

U.S. Customers: Thackray’s 2010 Investor’s Guide: How to Profit from Seasonal Market Trends (Thackray’s Investor’s Guide)

Seasonal trades in the book that currently are active include Consumer Discretionary, Small Cap, Platinum, U.S. Materials, U.S. Oil Exploration & Production and Metals & Mining.

Disclaimer: Comments and opinions offered in this report at www.timingthemarket.ca are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered in this report is believed to be accurate, but is not guaranteed.

Don Vialoux is a research analyst for JovInvestment Management Inc. All of the views expressed herein are the personal views of the author and are not necessarily the views of JovInvestment Management Inc., although any of the recommendations found herein may be reflected in positions or transactions in the various client portfolios managed by JovInvestment Management Inc

HAP Seasonal Rotation E.T.F. | HAC-T $9.96 February 1 2010

Open	9.760			-
High	9.960		-
Low	9.760		-
Bid x2	9.950		-
Ask x5	9.980		-
Volume	11,510		-
52-wk High 01/18	10.650		-
52-wk Low 01/29	9.750

Net Asset Value: $9.95 per unit

Relative performance since inception of the fund:

HAC                  -0.40%

S&P 500            -0.55%

DJIA                 -1.42%

TSX Composite   -2.43%

Sponsored By...

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