Several places have “heatmaps” that they publish. These are “maps” where each block is a given stock, ETF, or other instrument of interest. Often the size of the block tells you how much traded while the color tells you the degree of change.
Most folks just watch them, more or less “live”, and “buy what’s hot”. But you can also do more with them. This is the ETF heatmap from Finviz. It’s the “large” size, so click on it to make it readable.
OK, what can we see? First off, what is red? These things all moved together. Things like GLD the Gold ETF along with several other metals. (look in the lower left under “commodities”). You can also pick up that DGP, IAU, UGL, SGOL all moved the same way, as did SLV, AGQ, SIVR, and DBS. (on the original, you can click on a part of the map to zoom in and read the very small boxes). Putting them into a chart request on BigCharts or into a ticker lookup on Yahoo Finance would inform you that AGQ is a leveraged Silver, while SIVR and DBS are just other silver ETFs. So right there, you can learn that there are different choices as to vehicle. A bit of looking would show you which ones hold physical metal, and which ones have futures contracts or options contracts in them. Putting them into a ‘race’ would let you see which track the actual sliver price better and / or are more efficient.
From this chart, we can see that AGQ moves faster and further (is more volatile) that SLV, while the line for SIVR is almost exactly identical with it. SIVR has also landed directly on top of the DBS red line effectively hiding it on the graph. (There are tiny hints of red at some of the inflections on a very very large graph).
In this way, we can find different tickers that do the same job, see which ones have “tracking errors”, and by checking volume traded see which are more popular (or just look at the size of the square on the heat map…) In this case, we can also see just how incredibly gut wrenching it would have been to be in AGQ during the ‘bubble pop’ at the April May transition. If using that ticker, you MUST check frequently and it is far more critical to avoid buying at the top of a spike…
Looking up at the upper right, under “US Sector” the three tickers that are down are GDX, GDXJ and SIL. Checking them in either BigCharts or Yahoo Finance informs that they are the Gold Miners (GDX) the Junior Gold Miners (GDXJ) and the Silver Miners (SIL).
OK, “one day does not causality make”, but if we watch this for a while and frequently notice that the miners move with the metals, that’s a great big clue… We can see that the Gold Miners and the Junior Gold Miners move almost the same on the long term, but over the shorter term, the juniors often have more range, or volatility, than the majors. Similarly, the shape of that green Silver Miners curve is similar to the gold miners. Generally displaced higher due to the silver bubble, but moving together day by day in direction; and after the bubble much of the premium came out of them. (Note, too, that they were dropping while the bubble was building… one of the key things that tipped off the bubble was the miners not following the commodity – along with the divergence from other metals on daily ‘shape’ of the moves and direction. Euphoria had caused a disconnect from other market forces.)
Also of note is that for all the talk of gold being volatile, the gold miners are even more so.
While we’re on this chart: The indicators are presently saying to ‘stay in’ as MACD is “blue on top” and above zero while RSI has not yet started ‘steps down’ from a near 80 approach. But as we are in a ‘news driven market’, metals fell today. While that fall could be the start of a new trend, we must wait for the indicators to confirm it. As things stand, it’s just a one day dip due to news. HOWEVER, given that prior bubble, a lot of folks are going to be very antsy and prone to dump quick on a down day.
Quite a lot you can pick up from a couple of small spots on one heat map, eh?
But wait! There’s More!
Toward the upper right, there’s a set of tickers that includes EEV and FXP. The first one is an ‘ultrasort Emerging Markets” while the second is an ‘inverse China’ ETF. These are funds that use options to “sell short” those market baskets for you. The “shorts” are being squeezed today… The “ultrashort” is a 2x leveraged short fund. And the other tickers? We could explore the rest of that area and find things like we did above with silver and gold. EDZ, for example, is a 3x Short Emerging Market. EUM is an “inverse” emerging markets, so the same directional bet as EEM and EDZ, but with less leverage, so less volatility (and less tendency to have the options decay away to zero due to their wasting asset character).
Here we can see how the “ultra short” funds can also be “ultra stinkers” in a rising market.
Note how EEM and SPY are largely tracking Gold in broad terms over this time period (though ‘excursions’ are often in other directions for a few weeks at a time). There is a general “uplift” of all assets as the dollar is debased. Doesn’t matter which stuff, much. But “Stuff” is moving up in general as the dollar falls.
On the live heat map, you can click on a box and it will open to a graph of that ticker and financial details, so you don’t need to go to BigCharts to get a graph of a single ticker or find out, generally, what it is. For example, a “double click” on the EEV box gives:
ProShares UltraShort MSCI Emerging Mkts
Financial | Exchange Traded Fund | USA
So we know it is an ETF traded on the N.Y. Stock Exchange. It is an ‘ultra short’ of the MSCI index of Emerging Markets. The company that makes it is “ProShares”. It is from the USA. A web search of ProShares will give a link to their website and further list off all their offerings…
Fund Name Ticker Group Intraday Symbol NAV as of 7/18/11 Market as of 7/18/11 Index/Benchmark Daily Obj.* Bloomberg Index Symbol Price Change Price Change UltraPro Russell2000 URTY Ultra URTY.IV $ 85.70 $ -4.16 $ 85.60 $ -4.18 Russell 2000® Index 3x RTY UltraPro MidCap400 UMDD Ultra UMDD.IV $ 91.18 $ -3.80 $ 91.13 $ -3.74 S&P MidCap 400 Index 3x MID UltraPro Dow30 UDOW Ultra UDOW.IV $ 147.70 $ -3.33 $ 147.66 $ -3.29 Dow Jones Industrial AverageSM 3x INDU Ultra MSCI EAFE EFO Ultra EFO.IV $ 83.18 $ -2.54 $ 82.65 $ -3.25 MSCI EAFE Index 2x MXEA Ultra MSCI Emerging Markets EET Ultra EET.IV $ 101.21 $ -2.44 $ 101.44 $ -2.51 MSCI Emerging Markets Index 2x MXEF Ultra Telecommunications LTL Ultra LTL.IV $ 57.96 $ -2.03 $ 58.05 $ -2.04 Dow Jones U.S. Select TelecommunicationsSM Index 2x DJSTEL Ultra Nasdaq Biotechnology BIB Ultra BIB.IV $ 75.76 $ -2.01 $ 75.71 $ -2.02 NASDAQ Biotechnology® Index 2x NBI Ultra MidCap400 MVV Ultra MVV.IV $ 70.96 $ -1.95 $ 70.84 $ -1.98 S&P MidCap 400 Index 2x MID UltraPro S&P500 UPRO Ultra UPRO.IV $ 75.76 $ -1.91 $ 75.78 $ -1.81 S&P 500® 3x SPX Ultra MSCI Japan EZJ Ultra EZJ.IV $ 71.54 $ -1.79 $ 71.48 $ -1.79 MSCI Japan Index 2x MXJP UltraShort Silver‡ (update) ZSL Short ZSL.IV $ 13.36 $ -1.71 $ 13.25 $ -0.97 Silver -2x SLVRLN Ultra Russell2000 Growth UKK Ultra UKK.IV $ 53.92 $ -1.62 $ 53.87 $ -1.49 Russell 2000® Growth Index 2x RUO Ultra Russell3000 UWC Ultra UWC.IV $ 83.35 $ -1.61 $ 83.74 $ -0.77 Russell 3000® Index 2x RAY Ultra Financials UYG Ultra UYG.IV $ 58.55 $ -1.60 $ 58.53 $ -1.64 Dow Jones U.S. FinancialsSM Index 2x DJUSFN Ultra Russell2000 UWM Ultra UWM.IV $ 45.85 $ -1.47 $ 45.86 $ -1.46 Russell 2000® Index 2x RTY Ultra MSCI Europe UPV Ultra UPV.IV $ 34.75 $ -1.46 $ 34.52 $ -1.94 MSCI Europe Index 2x MXEU Ultra SmallCap600 SAA Ultra SAA.IV $ 51.05 $ -1.43 $ 51.09 $ -1.48 S&P SmallCap 600 Index 2x SML UltraPro QQQ TQQQ Ultra TQQQ.IV $ 84.05 $ -1.38 $ 84.09 $ -1.41 NASDAQ-100® Index 3x NDX Ultra Consumer Goods UGE Ultra UGE.IV $ 79.37 $ -1.32 $ 79.30 $ -1.21 Dow Jones U.S. Consumer GoodsSM Index 2x DJUSNC Ultra Russell MidCap Growth UKW Ultra UKW.IV $ 54.44 $ -1.32 $ 53.88 $ -1.41 Russell Mid-Cap® Growth Index 2x RDG Ultra Consumer Services UCC Ultra UCC.IV $ 55.91 $ -1.29 $ 55.88 $ -0.90 Dow Jones U.S. Consumer Services SM Index 2x DJUSCY Ultra Industrials UXI Ultra UXI.IV $ 49.62 $ -1.28 $ 49.63 $ -1.21 Dow Jones U.S. IndustrialsSM Index 2x DJUSIN Ultra KBW Regional Banking KRU Ultra KRU.IV $ 42.90 $ -1.24 $ 42.84 $ -1.89 KBW Regional Banking Index 2x KRX Ultra DJ-UBS Crude Oil‡ UCO Ultra UCO.IV $ 42.74 $ -1.22 $ 42.76 $ -1.25 Dow Jones® UBS Crude Oil Sub-IndexSM 2x DJUBSCL Ultra Russell2000 Value UVT Ultra UVT.IV $ 32.14 $ -1.09 $ 32.01 $ -1.15 Russell 2000® Value Index 2x RUJ Ultra Health Care RXL Ultra RXL.IV $ 64.54 $ -1.08 $ 64.61 $ -1.09 Dow Jones U.S. Health CareSM Index 2x DJUSHC Ultra Russell MidCap Value UVU Ultra UVU.IV $ 38.32 $ -1.04 $ 38.74 $ -0.09 Russell Mid-Cap® Value Index 2x RMV Ultra Utilities UPW Ultra UPW.IV $ 47.83 $ -1.03 $ 47.82 $ -0.94 Dow Jones U.S. Utilities SM Index 2x DJUSUT Ultra Real Estate URE Ultra URE.IV $ 60.42 $ -1.01 $ 60.47 $ -0.96 Dow Jones U.S. Real EstateSM Index 2x DJUSRE Ultra QQQ QLD Ultra QLD.IV $ 89.77 $ -0.98 $ 89.86 $ -0.94 NASDAQ-100® Index 2x NDX Ultra Dow30 DDM Ultra DDM.IV $ 62.89 $ -0.94 $ 62.86 $ -1.00 Dow Jones Industrial AverageSM 2x INDU Ultra 20+ Year Treasury UBT Ultra UBT.IV $ 83.92 $ -0.93 $ 83.52 $ -1.53 Barclays Capital U.S. 20+ Year Treasury Bond Index 2x LT11TRUU Ultra Basic Materials UYM Ultra UYM.IV $ 51.94 $ -0.88 $ 51.85 $ -0.99 Dow Jones U.S. Basic MaterialsSM Index 2x DJUSBM Ultra Semiconductors USD Ultra USD.IV $ 36.25 $ -0.88 $ 36.27 $ -0.83 Dow Jones U.S. SemiconductorsSM Index 2x DJUSSC Ultra MSCI Mexico Investable Market UMX Ultra UMX.IV $ 40.02 $ -0.86 $ 40.87 $ 0.00 MSCI Mexico Investable Market Index 2x MZMXI Ultra S&P500 SSO Ultra SSO.IV $ 51.72 $ -0.86 $ 51.71 $ -0.89 S&P 500® 2x SPX Ultra MSCI Pacific ex-Japan UXJ Ultra UXJ.IV $ 35.01 $ -0.85 $ 35.11 $ -2.27 MSCI Pacific ex-Japan Index 2x MXPFJ Ultra Russell1000 Growth UKF Ultra UKF.IV $ 56.82 $ -0.85 $ 57.07 $ -0.32 Russell 1000® Growth Index 2x RLG Ultra MSCI Brazil UBR Ultra UBR.IV $ 28.86 $ -0.69 $ 28.98 $ -0.56 MSCI Brazil Index 2x MXBR Ultra Russell1000 Value UVG Ultra UVG.IV $ 30.52 $ -0.65 $ 30.23 $ -0.94 Russell 1000® Value Index 2x RLV Ultra Oil & Gas DIG Ultra DIG.IV $ 56.95 $ -0.64 $ 57.00 $ -0.59 Dow Jones U.S. Oil & GasSM Index 2x DJUSEN Ultra Technology ROM Ultra ROM.IV $ 64.62 $ -0.49 $ 64.64 $ -0.38 Dow Jones U.S. Technology SM Index 2x DJUSTC ProShares Credit Suisse 130/30 CSM Alpha CSM.IV $ 59.96 $ -0.48 $ 59.99 $ -0.44 Credit Suisse 130/30 Large-Cap Index 1x CS13030 Ultra FTSE China 25 XPP Ultra XPP.IV $ 68.31 $ -0.40 $ 68.19 $ -0.56 FTSE China 25 Index 2x XIN0I Ultra Investment Grade Corporate IGU Ultra IGU.IV $ 42.50 $ -0.37 $ 42.79 $ 0.00 Markit iBoxx $ Liquid Investment Grade Index 2x IBOXIG UltraShort Gold‡ GLL Short GLL.IV $ 21.11 $ -0.33 $ 20.89 $ -0.37 Gold -2x GOLDLNPM Ultra DJ-UBS Commodity‡ UCD Ultra UCD.IV $ 36.13 $ -0.21 $ 36.14 $ -0.22 Dow Jones® UBS Commodity IndexSM 2x DJUBS ProShares RAFI® Long/Short RALS Alpha RALS.IV $ 39.68 $ -0.21 $ 39.66 $ -0.27 RAFI® US Equity Long/Short Index 1x RAFILS ProShares Hedge Replication ETF HDG Alpha HDG.IV $ 39.91 $ -0.15 $ 39.93 $ -0.03 Merrill Lynch Factor Model® – Exchange Series 1x MLEIFCTX Ultra High Yield UJB Ultra UJB.IV $ 40.19 $ -0.15 $ 40.40 $ 0.00 Markit iBoxx $ Liquid High Yield Index 2x IBOXHY Ultra Euro‡ ULE Ultra ULE.IV $ 28.60 $ -0.15 $ 28.55 $ -0.19 Euro/US Dollar 2x -- UltraShort TIPS TPS Short TPS.IV $ 33.29 $ -0.12 $ 33.28 $ 0.03 Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L) -2x LBUTTRUU UltraShort 3-7 Year Treasury TBZ Short TBZ.IV $ 36.52 $ -0.06 $ 36.70 $ 0.06 Barclays Capital U.S. 3-7 Year Treasury Bond Index -2x LT13TRUU UltraShort 7-10 Year Treasury PST Short PST.IV $ 37.21 $ -0.04 $ 37.29 $ 0.06 Barclays Capital U.S. 7-10 Year Treasury Bond Index -2x LT09TRUU Short 7-10 Year Treasury TBX Short TBX.IV $ 37.63 $ -0.02 $ 37.72 $ 0.00 Barclays Capital U.S. 7-10 Year Treasury Bond Index -1x LT09TRUU UltraShort Yen‡ YCS Short YCS.IV $ 14.57 $ -0.01 $ 14.56 $ -0.02 Yen/US Dollar -2x -- Ultra Yen‡ YCL Ultra YCL.IV $ 34.99 $ 0.01 $ 35.04 $ 0.02 Yen/US Dollar 2x -- Short High Yield SJB Short SJB.IV $ 38.97 $ 0.06 $ 39.04 $ 0.11 Markit iBoxx $ Liquid High Yield Index -1x IBOXHY Ultra 7-10 Year Treasury UST Ultra UST.IV $ 89.98 $ 0.07 $ 89.93 $ -0.03 Barclays Capital U.S. 7-10 Year Treasury Bond Index 2x LT09TRUU UltraShort Euro‡ EUO Short EUO.IV $ 17.63 $ 0.09 $ 17.64 $ 0.08 Euro/US Dollar -2x -- Short FTSE China 25 YXI Short YXI.IV $ 42.56 $ 0.12 $ 42.60 $ -0.03 FTSE China 25 Index -1x XIN0I Short Investment Grade Corporate IGS Short IGS.IV $ 38.31 $ 0.16 $ 38.66 $ 0.00 Markit iBoxx $ Liquid Investment Grade Index -1x IBOXIG UltraShort FTSE China 25 FXP Short FXP.IV $ 29.03 $ 0.16 $ 29.02 $ 0.15 FTSE China 25 Index -2x XIN0I Short QQQ PSQ Short PSQ.IV $ 32.08 $ 0.17 $ 32.07 $ 0.16 NASDAQ-100® Index -1x NDX Short Oil & Gas DDG Short DDG.IV $ 34.65 $ 0.18 $ 34.58 $ 0.09 Dow Jones U.S. Oil & GasSM Index -1x DJUSEN Short 20+ Year Treasury TBF Short TBF.IV $ 41.71 $ 0.21 $ 41.84 $ 0.40 Barclays Capital U.S. 20+ Year Treasury Bond Index -1x LT11TRUU UltraShort Real Estate SRS Short SRS.IV $ 14.03 $ 0.22 $ 14.02 $ 0.22 Dow Jones U.S. Real EstateSM Index -2x DJUSRE UltraShort DJ-UBS Commodity‡ CMD Short CMD.IV $ 44.39 $ 0.24 $ 44.14 $ 0.35 Dow Jones® UBS Commodity IndexSM -2x DJUBS UltraShort Dow30 DXD Short DXD.IV $ 17.15 $ 0.25 $ 17.14 $ 0.25 Dow Jones Industrial AverageSM -2x INDU UltraShort Russell3000 TWQ Short TWQ.IV $ 14.18 $ 0.26 $ 14.20 $ 0.19 Russell 3000® Index -2x RAY Short Real Estate REK Short REK.IV $ 35.42 $ 0.28 $ 35.42 $ 0.26 Dow Jones U.S. Real EstateSM Index -1x DJUSRE UltraShort Basic Materials SMN Short SMN.IV $ 16.87 $ 0.28 $ 16.89 $ 0.28 Dow Jones U.S. Basic MaterialsSM Index -2x DJUSBM UltraShort Russell1000 Growth SFK Short SFK.IV $ 19.61 $ 0.28 $ 19.63 $ 0.25 Russell 1000® Growth Index -2x RLG UltraShort Utilities SDP Short SDP.IV $ 13.74 $ 0.28 $ 13.75 $ 0.28 Dow Jones U.S. Utilities SM Index -2x DJUSUT Short Basic Materials SBM Short SBM.IV $ 35.74 $ 0.29 $ 35.71 $ 0.18 Dow Jones U.S. Basic MaterialsSM Index -1x DJUSBM Short Dow30 DOG Short DOG.IV $ 40.39 $ 0.29 $ 40.39 $ 0.30 Dow Jones Industrial AverageSM -1x INDU UltraShort Oil & Gas DUG Short DUG.IV $ 27.07 $ 0.30 $ 27.04 $ 0.27 Dow Jones U.S. Oil & GasSM Index -2x DJUSEN Short S&P500 SH Short SH.IV $ 41.30 $ 0.32 $ 41.30 $ 0.34 S&P 500® -1x SPX UltraShort S&P500 SDS Short SDS.IV $ 21.00 $ 0.33 $ 21.00 $ 0.35 S&P 500® -2x SPX Short MSCI Emerging Markets EUM Short EUM.IV $ 30.46 $ 0.35 $ 30.46 $ 0.37 MSCI Emerging Markets Index -1x MXEF Short SmallCap600 SBB Short SBB.IV $ 26.43 $ 0.35 $ 26.45 $ 0.36 S&P SmallCap 600 Index -1x SML UltraShort 20+ Year Treasury TBT Short TBT.IV $ 33.17 $ 0.35 $ 33.33 $ 0.60 Barclays Capital U.S. 20+ Year Treasury Bond Index -2x LT11TRUU UltraShort Consumer Goods SZK Short SZK.IV $ 23.20 $ 0.37 $ 23.18 $ 0.41 Dow Jones U.S. Consumer GoodsSM Index -2x DJUSNC UltraShort Health Care RXD Short RXD.IV $ 22.66 $ 0.37 $ 22.74 $ 0.23 Dow Jones U.S. Health CareSM Index -2x DJUSHC UltraPro Short QQQ SQQQ Short SQQQ.IV $ 23.99 $ 0.38 $ 23.98 $ 0.42 NASDAQ-100® Index -3x NDX UltraPro Short S&P500 SPXU Short SPXU.IV $ 15.93 $ 0.38 $ 15.92 $ 0.40 S&P 500® -3x SPX UltraShort MSCI Brazil BZQ Short BZQ.IV $ 17.05 $ 0.38 $ 17.04 $ 0.38 MSCI Brazil Index -2x MXBR UltraShort Consumer Services SCC Short SCC.IV $ 18.10 $ 0.39 $ 18.13 $ 0.40 Dow Jones U.S. Consumer Services SM Index -2x DJUSCY Short MidCap400 MYY Short MYY.IV $ 30.53 $ 0.40 $ 30.52 $ 0.40 S&P MidCap 400 Index -1x MID UltraShort Technology REW Short REW.IV $ 56.72 $ 0.41 $ 56.73 $ 0.38 Dow Jones U.S. Technology SM Index -2x DJUSTC Short Russell2000 RWM Short RWM.IV $ 29.87 $ 0.45 $ 29.87 $ 0.45 Russell 2000® Index -1x RTY Short Financials SEF Short SEF.IV $ 37.79 $ 0.49 $ 37.81 $ 0.50 Dow Jones U.S. FinancialsSM Index -1x DJUSFN UltraShort QQQ QID Short QID.IV $ 49.35 $ 0.52 $ 49.30 $ 0.49 NASDAQ-100® Index -2x NDX UltraShort Russell1000 Value SJF Short SJF.IV $ 31.07 $ 0.62 $ 29.77 $ 0.00 Russell 1000® Value Index -2x RLV UltraPro Short Dow30 SDOW Short SDOW.IV $ 31.44 $ 0.67 $ 31.43 $ 0.67 Dow Jones Industrial AverageSM -3x INDU UltraShort MSCI Emerging Markets EEV Short EEV.IV $ 30.79 $ 0.69 $ 30.75 $ 0.67 MSCI Emerging Markets Index -2x MXEF Short MSCI EAFE EFZ Short EFZ.IV $ 48.57 $ 0.70 $ 48.55 $ 0.68 MSCI EAFE Index -1x MXEA UltraShort MSCI EAFE EFU Short EFU.IV $ 24.70 $ 0.70 $ 24.71 $ 0.71 MSCI EAFE Index -2x MXEA UltraPro Short Russell2000 SRTY Short SRTY.IV $ 17.55 $ 0.77 $ 17.53 $ 0.81 Russell 2000® Index -3x RTY UltraShort MSCI Japan EWV Short EWV.IV $ 33.02 $ 0.78 $ 32.99 $ 0.84 MSCI Japan Index -2x MXJP UltraPro Short MidCap400 SMDD Short SMDD.IV $ 20.71 $ 0.79 $ 20.71 $ 0.79 S&P MidCap 400 Index -3x MID Short KBW Regional Banking KRS Short KRS.IV $ 60.07 $ 0.82 $ 60.01 $ 0.86 KBW Regional Banking Index -1x KRX UltraShort Nasdaq Biotechnology BIS Short BIS.IV $ 37.78 $ 0.95 $ 37.80 $ 1.00 NASDAQ Biotechnology® Index -2x NBI UltraShort MSCI Mexico Investable Market SMK Short SMK.IV $ 49.85 $ 1.02 $ 50.00 $ 1.51 MSCI Mexico Investable Market Index -2x MZMXI UltraShort MidCap400 MZZ Short MZZ.IV $ 39.90 $ 1.03 $ 39.91 $ 1.00 S&P MidCap 400 Index -2x MID UltraShort Russell MidCap Growth SDK Short SDK.IV $ 46.72 $ 1.07 $ 47.13 $ 0.63 Russell Mid-Cap® Growth Index -2x RDG VIX Mid-Term Futures ETF‡ VIXM Volatility VIXM.IV $ 62.55 $ 1.07 $ 62.49 $ 0.85 S&P 500 VIX Mid-Term Futures Index 1x SPVXMPID UltraShort Russell2000 Growth SKK Short SKK.IV $ 38.75 $ 1.09 $ 38.68 $ 0.95 Russell 2000® Growth Index -2x RUO UltraShort Industrials SIJ Short SIJ.IV $ 45.36 $ 1.11 $ 45.41 $ 1.06 Dow Jones U.S. IndustrialsSM Index -2x DJUSIN UltraShort SmallCap600 SDD Short SDD.IV $ 45.26 $ 1.18 $ 45.22 $ 1.02 S&P SmallCap 600 Index -2x SML UltraShort MSCI Pacific ex-Japan JPX Short JPX.IV $ 52.41 $ 1.20 $ 51.39 $ 0.00 MSCI Pacific ex-Japan Index -2x MXPFJ UltraShort Semiconductors SSG Short SSG.IV $ 54.61 $ 1.25 $ 54.58 $ 1.20 Dow Jones U.S. SemiconductorsSM Index -2x DJUSSC UltraShort Telecommunications TLL Short TLL.IV $ 39.01 $ 1.27 $ 36.16 $ 0.00 Dow Jones U.S. Select TelecommunicationsSM Index -2x DJSTEL UltraShort DJ-UBS Crude Oil‡ SCO Short SCO.IV $ 47.50 $ 1.27 $ 47.43 $ 1.31 Dow Jones® UBS Crude Oil Sub-IndexSM -2x DJUBSCL UltraShort Russell2000 TWM Short TWM.IV $ 42.62 $ 1.28 $ 42.60 $ 1.28 Russell 2000® Index -2x RTY Ultra Gold‡ UGL Ultra UGL.IV $ 87.15 $ 1.28 $ 88.04 $ 1.48 Gold 2x GOLDLNPM UltraShort Russell MidCap Value SJL Short SJL.IV $ 51.81 $ 1.32 $ 51.08 $ 0.00 Russell Mid-Cap® Value Index -2x RMV UltraShort Russell2000 Value SJH Short SJH.IV $ 49.60 $ 1.56 $ 49.52 $ 1.32 Russell 2000® Value Index -2x RUJ UltraShort Financials SKF Short SKF.IV $ 65.98 $ 1.69 $ 65.95 $ 1.71 Dow Jones U.S. FinancialsSM Index -2x DJUSFN UltraShort MSCI Europe EPV Short EPV.IV $ 49.44 $ 1.90 $ 49.46 $ 1.83 MSCI Europe Index -2x MXEU VIX Short-Term Futures ETF‡ VIXY Volatility VIXY.IV $ 51.50 $ 2.00 $ 51.11 $ 1.07 S&P 500 VIX Short-Term Futures Index 1x SPVXSPID Ultra Silver‡ (update) AGQ Ultra AGQ.IV $ 218.99 $ 22.20 $ 220.81 $ 13.03 Silver 2x SLVRLN
Well, now THAT’s a lot for use as “Dig Here!” fodder… (at their site, the prices and changes are dynamic and you can click on fund names and tickers to get fund details and performance graphs).
See how a little box on a Heat Map can lead to a lot of other places for ideas?
Back At The Map
So we’ve seen that gold, silver, and short funds in emerging markets seem to have some correlation.
What else is red?
In the upper left are a set of “US” tickers. SDS, QID, SH, TWM, DXD, etc. Those are short and ultra short tickers / ETFs in the US markets. US and Emerging markets move together on daily moves… VXX and VXZ are funds that do options of the direction of volatility. Volatility is usually lower on “up” days and higher on “down” days (getting spectacularly high at market crash / bottoms). So we could even discover here how volatility relates to the market directions (or just observe it as a volatility line on a chart from BigCharts). We also learn that there are “tickers” where we can bet on volatility directly.
Toward the middle bottom is a block labeled “Caps” with TZA and BGZ, small caps and large caps respectively. Gee, both large and small caps go up and down together. It takes a ‘race’ to see how they diverge over time and in what kinds of market conditions…
To the right of them are DTO and SCO, both double or ultra shorts of Crude Oil. Oddly, they are down on an up day. Often oil moves up driving stocks down or down moving stocks up. (So you can not just assume that a one day ‘same way’ color is the frequent trend…) Today, oil was up, and so were stocks. The daily drivers today were divergent and enough to break the typical inverse relationship. It could be interesting to go hunting for details, but not in this posting. (Too much to cover already).
On the left bottom we have “US Sector Leverage”. SRS is an ‘ultra short’ Real Estate while DUG is an ‘ultra short oil and gas’. FAZ is a ‘Financials 3x short” while SKF is an ‘ultra short’ financials. We could speculate that “stuff” like oil, gas, land, etc. were all going up and shorting them was a bad idea. Yet this is a disconnect from the movements of metals. Clearly a bit more “why?” could be done to sort out these other “stuff stocks” from the metals. Looking just to the left of the red tickers we will find the equivalent ‘positive bets’. DIG for “oil up” and FAS for 3x financial ‘bull’. Buy looking at the tickers under a similar heading, we can find complementary ‘bets’, and be ready (if we have one) to ‘buy the other’ to hedge to neutral and then ‘sell one’ to pick a new directional bet once the trend resolves. DRV is a 3x realestate short and dropped 5.25% today… ROM, the “ultra technology” was up 5.4%. Not a day to be “short realestate and technology”, so I’d speculate the news flow was ‘good’. ( I know IBM reported blowout earnings).
OK, you get the idea. I’ll leave you to wander the rest of the heat map and see what other things can be discovered. Who did NOT move up much but just sort of sat there (like bonds) and what clusters moved up together.
A Longer Term View
We can also set the map to show a one week, or one month, or even one year period. Looking at those maps shows up longer term trends. Were the “pops” today just odd ducks? Or part of a trend? Does the one week map show a new trend developing compared to the month or year graphs?
Here are the one week, one month, and one year heat maps. See any trends / divergences?
There are many things to observe here. I’ll just touch on a few. In a long term bull market, most things go up. Only the short funds tend to be dead loosers. There are exceptions, such as UNG that is long natural gas. Digging into that you would learn about fracking and the shale gas boom that has crashed prices. The darker green spots show places that did go up, but had a major bit of ‘issue’ (often Sovereign Risk…). So on the one year chart, notice in the upper right that EWZ is lagging? They elected a more socialist leader and started playing games with foreign investors money. See all the middle left KRE, IYF, KBE, XLF? Regional Banking, Financial Sector, KBW Bank ETF, Financial ETF. Gee, you might guess that there was a real estate and banking problem and maybe even that the government was “helping” them…
At the bottom, you can see that bonds, generally, just don’t move as much as stocks. We also can see, in the lower right, that metals have done nicely too.
OK, so if “past is prologue” a longer view can set your ‘context’. Then you work backwards to a closer view and can ask: “Is one of these, or a group of them, showing a reversal? Or just a ‘buy the dip’?” And “Has the underlaying problem with Brazil and Financials been ‘fixed’? Or do I stay out?”. Etc.
The one month chart vs the one year shows QQQ beating SPY. “Is the tech sector likely to continue to beat?”
The one month also shows SLV beating GLD. “Will silver continue to have ‘special’ features over gold?”.
You get the idea. Try your hand at it. Pick something that interests you and “Dig In!”
That’s how you can use a simple heat map to get some clues about longer term trends in markets, and by sectors, and to find ‘natural hedges’ where owning a bit of one offsets the other, or focus in on strong swings as a fast trader.
For example, note that UNG was red on the one year, is dark green on the one month, but bright green on the week. On the day it’s a sort of ‘oxblood’. That looks, to me, long a long term drop as ended, and there is a small bit of ‘up’ lately, so the ‘down today’ is more likely a ‘buy soon’ than a ‘panic out’. (Running a chart ‘race’ on it would clear up some of that detail).
So that’s how I use heat maps. Not just looking at the ‘one day what is green’, but doing a bit more ‘digging in’ and doing some compare and contrast of ‘time scales’…
Update 20 July 2011
Just to note, there are also some other Heat Maps of interest. This one shows the NYSE listed foreign stocks on a global map. So, for example, today the major US averages were down and the NYSE composite was up a tiny. Why?
Looks to me like a ‘Dead Cat Bounce’ in some of the European banks, or perhaps just a ‘counter trend rally’ on Debt Deal news. NOK Nokia and CHL China Mobile have added some ‘lift’ too, so some overseas cell phone action added to the mix. Looking at the graphs, both the banks and the cell phones look like a ‘short cover’ at the bottom of a long slide, so might be a “bottom call” for long term value players.
So here you see how it can direct where a “Dig Here!” ought to be done to find more details on an observation of a bulk index move.