Using Heatmaps

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.

FinViz One Day ETF Heat Map 19 July 2011

FinViz One Day ETF Heat Map 19 July 2011

Original Page for a live image

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.

Various Silver and Gold tickers

Various Silver and Gold tickers

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).

Emerging market "shorts" vs emerging market EEM, SPY, and GLD

Emerging market "shorts" vs emerging market EEM, SPY, and GLD

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:

EEV [NYSE]
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…

http://www.proshares.com/funds/

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?

FinViz One Week map, 19 July 2011

FinViz One Week map, 19 July 2011

FinViz one month map 19 July 2011

FinViz one month map 19 July 2011

FinViz one year map 19 July 2011

FinViz one year map 19 July 2011

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?

FinViz Global stock Heat Map 20 July 2011

FinViz Global stock Heat Map 20 July 2011

Live version of this Heat Map

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.

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About E.M.Smith

A technical managerial sort interested in things from Stonehenge to computer science. My present "hot buttons' are the mythology of Climate Change and ancient metrology; but things change...
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1 Response to Using Heatmaps

  1. E.M.Smith says:

    I’ve added an update per todays NYSE vs SPY divergence and how a global Heat Map can help find the answer to “why?”.

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