Take a look at the ETF heat map below – we’re looking at January performance (or YTD) so this gives you a solid idea of the winners and losers so far in 2010. I suspect there is a positive correlation between the overall market and individual sectors with respect to the January Barometer. That said, we may be looking at the strongest and weakest sectors of the year.

• 90% of World Market Are Negative (Majority of Green are Short/Inverse ETFs)
• The Worst Performing Group Looks Like Basic Materials (XLB, GDX, XME, SLX)
• The BEST Performing Group is REGIONAL BANKS (KRE, RKH, IAT)
• Other Notable OUTPERFORMERS Include Japan (EWJ), Homebuilders (XHB), Russia (RSX), Global Shipping (SEA)

ETF HEATMAP (Close of January 2010/YTD)

Interested in learning more about ETF trading? Sign up and receive my free report, The Next Generation ETF Portfolio today.