June 4, 2010 – The May ETF Score Card

Featured Trades: (EDV), (SDS), (UUP), (TBT)
Canada iShares Trust ETF
Currency Shares Canadian Dollar Trust ETF
iPath S&P 500 VIX Short-Term Futures ETN
ProShares Ultra Short S&P 500 ETF
Vanguard Extended Duration ETF
PowerShares DB US Dollar Index Bullish Fund

2) The May ETF Score Card. I always find it useful to review the best and worst performing ETF's each month to get a crispy clear snapshot on the state of the global economy, and see if I missed anything. A great performer was in fact an ETN (exchange traded note) for the front month VIX futures, (VXX), bringing in a stunning 94% return (please see my call to load up on VIX in the teens  by clicking here). Of course, the leveraged short S&P 500 play (SDS) brought in a stellar 31% gain, thanks to the crowd who correctly sold in May and went away, thus missing the 'flash crash' (click here for that call ). A flight to safety, double dip, deflationary scare put a turbocharger on the long dated Treasury (EDV) up 26%. I missed that one, but a tight stop bailed me out of my contrary position in the (TBT). Flight to safety was also the order of the day as traders poured into the dollar through the long dollar (UUP), fleeing the Greece inspired carnage in the Euro, which was up 6.7%.