Weekly Review and ETF picks for Jan 31 2011 Week.

On Friday, after trapping the bulls with marketing going above 1300, the market reversed with earnings miss from Amazon and weak PC sales from Microsoft and then CNBC and all media blasting out Egypt news and causing unnecessary worries (Suez canal shutdown, inflation caused by QE2, Protest spreading to Saudi Arabia, Iran etc),

As we had pointed out on Jan 26, that market was a bit over extended and going between 1280 and 1300 levels.

Weekly ETF Returns

Due to markets dropping, I got stopped out of FAS and TYH positions and returns for these two days were -4.6%.

Currently only ETF that was positive is ERX / USO / USL.

Markets are in correction and we will have to see whether we enter the Bear territory or this is just a 5% correction that everyone is expecting.

Couple of charts below give you the view on why we call these market in correction

Unless market reverses and closes above 1300, I am not taking any positions. I might take some short positions but I dont suggest my readers to do that as Shorting is much more stressful than buying.

Some of the stocks of interest this upcoming week
PWER, MGIC, SIMG, PDO, AFOP, CWCO, MBFI, CLR, ARAY (looks the best) and HES

Weekly ETF Review and Picks for Jan 26

Today the market was basking the "Do Nothing" Glow both from President Obama and then later in the afternoon from FEDS.

The high flying DOW touching 12,000 and S&P coming close to 1300.
Tomorrow with NFLX reporting very good quarter, I expect market to open up higher then with bunch of DATA reports..

So depending on that data we might be pushed into the new Highs territory or we might be pushed back into the range between 1275 and 1300 on S&P

Weekly ETF

TOP ETF for this upcoming week are as follows:

These are the top ETF to hold this week

1. SOXL - Stop at $59.

2. ERX - Stop at $63.17

3. DAG - Stop at 15.00

4. FAS - Stop at 29.95

5. TYH - Stop at 50.56

We will track the returns of these ETFs on Saturday.

Some of the stocks of interest this upcoming week

PWER, AMZN, CAT, AER and UCTT

Weekly ETF Picks

I have been on vacation since past couple of days so posting anything was not possible.

I will try to keep up with the posting but as time, internet access permits, I will post my comments. \

Markets have been choppy for past couple of days and swings between new highs and small dips.

The highly volatile names will keep on posting high gains.

This week's picks for the ETFs are as follows:

1. PALL

2. AGQ / SLV

3. ROB

4. XME

5. KRE

I will not track these top ETFs till I return from my vacation.

I am ending the year with on very very solid returns with bulk of the returns coming from the Google options. without these options, my returns would have been half.

Good Luck for the upcoming year.

This year's new goal is to reach 100% without using options and with options goal is to make 200%. Hopefully Godess Laxmi and Greek God PLUTUS have his blessings on all of us.

HAPPY NEW YEAR