Is Material ETF (XLB) ready to run?

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The Material ETF (XLB) is another ETF which will be benefited from the economy recovery. Raw material is the basic of all manufacturing products & infrastructures. Those mining companies and material makers will be doing well when there is huge demand of the basic material during the economy recovery. Another point to note is China is buying energy and material companies aggressively to ensure enough resources for future growth.

This XLB is primarily composed of companies involved in such industries as chemicals, construction materials, containers and packaging, metals and mining, and paper and forest products. Among its largest components are Monsanto, E.I. DuPont de Nemours & Co., and Dow Chemical Co. Top 20 stocks as of Oct 8, 2009 as follow:

The ETF is currently is on the long term up trend (200D MA on the up trend). 3 years high at $46 and current price is about $31. The immediate support level is $28.739 and subsequent support at $26.776.
My investment Plan
Entry Level: Between $27 and $29 (but need to monitor whether the price is still above 20D & 50D MA)
Time Frame: 1 to 3 year
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XLI – Industrial ETF for long term investment during economy recovery

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XLI is another ETF that I am watching closely. When the economy comes out from recession and starts the recovery, the companies from this sector will start to manufacture capital equipment, machinery, engines for transportation, etc. Every company needs to have those infrastructures & equipment in place to expand their manufacturing capacity to produce the goods during the economy expansion. The top 20 companies for the XLI ETF as of Sept 9, 2009 is listed below:

As of Sept 9, 2009, XLI ETF is traded at $25.96. It is trying to break the strong resistance of $25.445 (61.8% Finonacci Retracement Level). XLI is currently above 20D, 50D and 200D MA line. 200D MA, a long term trend has reversed and currently on the up trend. I will wait for see whether XLI can break the resistance and stay above the $25.445 in Sept / Oct before I put my money into this fund.

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XLK – Technology ETF on a nice up trend

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XLK is a technology ETF (Exchange Traded Fund). The top 20 holding as of Sept 4, 2009 are listed follow:

Technolgy stocks normally bring the economy out of recession and performs better during the early economy recovery. It is impossible to buy those technology stocks individually because those stocks are very expensive. As of Sept 4, 2009, Microsoft cost $24.62 per share, Apple cost $170.31 per share, Google cost $461.1 per share!!  However, we can invest in these nice technolgy stocks by investing in Technology ETF for long term especially during this economy recovery. XLK is currently on a nice up trend and we can accumulate the stocks when there is a dip.
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