| Prudent Trader Newsletter |

January 20, 2007

Attracting What You Want

Market & Sector Review
Prudent Trader's New Exchange Traded Funds Section
Largest Changes In Raw Numbers (21 Days)
This Week's Economic Reports

Attracting What You Want
This Week By: Vic Johnson

"People do not attract that which they want, but that which they are."
- James Allen

We recently received a very "unusual" email. The subscriber's question was a simple "What can I do to be successful that doesn't involve changing anything about who I am or how I think?"

My first response to the question was a hearty chuckle at the seeming naive-ness of the writer. The chuckle turned into sadness as I realized the pain the writer must feel at the thought of changing - wanting success but fearing change.

But the longer I thought about it, I realized that while most of us may never verbalize that question, our actions indicate that we believe that it is possible to achieve the success we desire without going through the necessary changes.

I know so many people who work very hard and diligently and sacrifice greatly in an effort to create wealth. But they haven't undertaken the personal changes necessary to reach their goal. Until they begin to think and act like wealthy people they'll never attract the wealth they seek. Wealthy people don't think and act the way they do because they have wealth. They have wealth because they think and act that way.

The same goes whether the goal is weight loss, physical fitness, quitting smoking, etc. As long as you think and act like a smoker, you're sure to keep smoking regardless of the patches, hypnosis, drugs or other cures you may seek. I know --- I did it for 20+ years.

To put it another way: When you stop working on what it is you're trying to get, and start working on YOU, only then will you get what it is you want. When you change, your results will change. Simple but true.

It really is very basic when you think about it. Jim Rohn says, "To attract attractive people, you must be attractive. To attract powerful people, you must be powerful. To attract committed people, you must be committed. Instead of going to work on them, you go to work on yourself. If you become, you can attract."

Download a FREE eBook of James Allen’s "As A Man Thinketh" Courtesy of Vic Johnson

Market & Sector Review
Prudent Trader's New Exchange Traded Funds Section

I am excited this week to introduce everyone to our NEW Exchange Traded Funds (ETF) section of the members' area. A good deal of work has finally come to fruition. Exchange Traded Funds are a natural extension to our Sector Analysis section as they too can be used to analyze sectors and industries in addition to major market, commodity, and foreign market activity to confirm or rebuff your other analysis.

In recent years there has been a virtual explosion in the number of ETF's for traders and investors to consider as a part of, or for all of there portfolio, or as trading vehicles. Our database now contains approximately 320 Exchange Traded Funds. About half have been trading less than one year. According to a recent "Wall Street Journal" article the number of Exchange Traded Funds is expected to double this year. It will be a challenge for me just to keep up with the new ETF listings and when to include them. All this begs the question: How does one wade through all these funds to find what's appropriate for there trading style and time frame? Enter the NEW Prudent Trader Exchange Traded funds section.

First and foremost, whether you're an experienced ETF trader/investor or brand new to Exchange Traded Funds, we have a brief education center. A series of links to what I think are very well written articles on the following subjects:

Why Exchange Traded Funds?
How ETFs work?
Tax Advantages with ETFs
Asset Allocation with ETFs
Understanding Style ETFs
Using ETF Options Conservatively
Options: Protecting Profits with ETFs
Exchange Traded Fund Glossary
History of Exchange Traded Funds
ETFs vs. Closed-End Funds
ETFs vs. Mutual Funds
Advanced ETF Strategies

This list will continue to grow as advantageous learning sources are uncovered. If anyone has a suggestion please forward the article or the link for inclusion in this section.

Next are links to each of the major fund families that comprise the ETF fund managers. This is an excellent source to learn about the particular funds objective as well as to retrieve the component issues of a particular Exchange Traded Fund. Most major sources of information such as Yahoo finance usually show just the top ten holdings. Some ETF's contain hundreds if not thousands of issues.

In our sector analysis section, part of the analysis used is composite calculations such as; advance/decline line, dollar weighted advancing minus declining volume and buying power to name a few. The shear number of ETF's, if nothing else, makes this approach impossible at this point in time. As our computing power grows, perhaps we will do composite work, no plans are currently in the works.

Let's now move on to the meat of the new ETF section -> ANALYSIS. The analysis section is divided into three columns. Most ETF sites I am familiar with categorize ETF's by investment objective, i.e. growth, value, etc. I have taken a slightly different approach and assigned each ETF to one of ten categories:

Broad or Major Market ETF
Sector ETF
Industry ETF
Growth & Value ETF
International & Emerging Markets ETF
Dividend / Bond or other Yield ETF
Commodity Based ETF
Short & Leveraged ETF
Foreign Currency ETF
Specialty & Other ETF

Listing of ETFs by Category

In this first (left most) column, at the bottom, is a link that will take you to a page where you can view the Exchange Traded Fund categories, scroll down and view each ETF that is assigned to each category. There are some instances where a particular ETF may fit in more than one category or a subjective judgment must be made as to which category it fits. If you are in disagreement with the assignments please let me know which ones and why. I am very open to switching if I buy the explanation.

The next, or center column contains links to chart pages. These chart pages are one year charts of each ETF within a specific category, i.e. all sector ETF's, all industry ETF's, etc. The charts are from Yahoo finance and depending upon your internet connection speed, allow a minute or two for them to load. The simple thought behind this addition is to give you the opportunity to view all charts within a specific category without having to jump from page to page and back again, simply scroll up and down one page.

The final column contains links to the data reports on Exchange Traded Funds. First link is to the Explanations and How to use dissertation. Please read this first before going on: As I have included how James O’Shaughnessy "What Works on Wall Street", uses relative strength, and also there is new data never before presented on this site.

View data in one table on all 300 plus ETF's or by Category.
View All ETFs
View Only ETFs within a specific Category:

Broad & Major Market ETFs
Sector ETFs
Industry ETFs
Growth & Value ETFs
International & Emerging Markets ETFs
Dividend/Bond/Yield ETFs
Commodity ETFs
Leveraged & Short Market ETFs
Foreign Currency ETFs
Specialty & Other ETFs

On to the Data Reports for ETF's:

Salient features in addition to the data provided:

These reports utilize frames which merely mean the header is one frame (page) and the data is another frame (page), but the pages appear as one.
Click on any symbol and the bottom frame will go to a chart of that ETF courtesy of StockCharts.com. Simply hit your browsers back button and return to the report.
Initial sort is by ETF Symbol. However, just click on any underlined heading (light yellow background) and the bottom frame will resort basis the values in that column
NOTE: Due to the vagaries of computers blank cells and zeros sort to the top of the listings. ETF’s with not enough data will receive, when ranked a zero, other columns where no condition fits is blank. Just scroll down the bottom frame to find what you are looking for. When viewing category listings the low ranking number is the best ranking of all ETF's in that category.
New data is presented for the ETF’s, namely Beta, Alpha, and R-Squared. This data may be expanded to other reports, or the time frame changed in the future, please read the explanations page.

I hope everyone enjoys this new section and more importantly uses what is provided. Foremost, in order to put the probabilities of successful trades and investments on your side. You now have important and relevant data, that to my knowledge is unavailable anywhere else, use it, profit from it.

If anyone has any questions or comments please feel to send an email. Also any suggestions as to A) additional data you would like to see or B) the presentation, also please feel free to send an email. Those of you who know me well also know that I am very open to new ideas and suggestions and I do answer all my non-spam email although sometimes it may take a day or two.

Largest Changes In Raw Numbers (21 Days)

Report Explanation & How to Use!

This Week's Economic Reports

Have A Great Week!
Bill

Disclaimer: Trading in securities, of any type, may not be suitable for all individuals. The contents of this newsletter are not a solicitation to buy or sell securities. The opinions expressed are solely that of the author. You must do your own research, contact your own financial advisor for suitability of any investments. Data gathered is from sources believed to be reliable, but NO guarantee as to their accuracy is made.