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PowerShares DWA Momentum ETF Message Board

  • hedgefundofone hedgefundofone Feb 21, 2008 6:06 AM Flag

    DWA = Dorsey Wright & Associates. Check them out.

    The underlying index of this ETF is based on the Dorsey Wright & Associates methodology for identifying and tracking leading stocks. They use technical analysis to determine which sectors are in favor and drill down to select those stocks within the favored sectors that are the strongest performers in the market. Point & Figure chart patterns, Bullish percents, relative strength, and other measures are used for these purposes. Tom Dorsey of Dorsey Wright & Associates has written possibly the best book on this approach, "Point & Figure Charting: The Essential Application for Forecasting and Tracking Market Prices":

    http://www.amazon.com/Point-Figure-Charting-Application-Forecasting/dp/0470043512/ref=sr_1_8?ie=UTF8&s=books&qid=1203589309&sr=8-8

    Tom and associates have also written a practical book on trading, "Tom Dorsey's Trading Tips: A Playbook for Stock Market":

    http://www.amazon.com/Tom-Dorseys-Trading-Tips-Playbook/dp/1576600777/ref=sr_1_1?ie=UTF8&s=books&qid=1203589309&sr=8-1

    The Dorsey Wright website, http://dorseywright.com contains a wealth of information about the markets, funds, individual stocks, and their excellent approach to trading/investing. They post a weekly video review and assessment of the markets. Associates daily contribute articles on market conditions and trends. A message board is provided for site subscribers to discuss various topics; contributors include professional money managers/financial advisors. They have a strong database with scanning capability and idea generation facility. I recommend any traders/investors to check out the site.

    Other than my own paid subscription to the website, I am in no way affiliated with Dorsey Wright and the opinions that I have expressed are all my own.

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    • Have you checked out DWA's weekly podcast? It comes out every Wednesday and runs for about 25 to 30 minutes. I think they noted a couple weeks ago that even though this ETF was hit with the rest of the market in the January sell off, about 2/3 of its holdings are still in positive RS trends.

      March 1st is approaching, and that is the inception date of this ETF (last year). Chances are they may at some point have the PM on as a guest in talking about the changes that have recently occurred in relative strength and sector rotation.

      I own shares of PDP, and will continue to do so. It's a good diversifier in the portfolio. Still looking at PIZ and PIE to see how they perform in the short term.

      For all interested, and I know Tom Dorsey wants to spread the word... you can find the podcast in iTunes and at the link below.

      http://media.dorseywright.com/podcast.php

      Would like to hear what others think...

      • 2 Replies to devilbrent47
      • Why do you consider this a diversifier? It seems to be just a slightly higher beta version of SPY or similar.

      • Yes, as a subscriber to their website, I always check their informative podcast. I use their portfolio tracker to track P&F/RS performance of my trades and scan their database for good long/short candidates. I also read and occasionally post on their message board. In any case, traders/investors might want to check them out. Better sign-off before someone accuses of spamming for them. (grin)

        devilbrent47, my e-mail address is my MB ID at yahoo dot com, if you want to correspond.

 
PDP
42.52-0.680(-1.57%)May 5 4:00 PMEDT