iShares Japan Fund Drops on the Highest Volume Traded in the Funds History

Antioch, CA (PRWEB) January 20, 2006

On Wednesday January 18th the Exchange Traded Fund iShares Japan Fund dropped on the highest volume in the funds history, over 86,000,000 shares. The price dropped to the 50 day moving average on the stock charts and then stopped. Wednesday’s trading volume was nearly 20,000,000 shares more then the previous volume high. Even though the news seems to indicate this is due to temporary panic, technical traders will view this as a negative sign.

On Thursday in Japan the markets were up. That indicates the ETF iShares Japan fund will move up on Thursday in the US. With the Hugh volume traded on a down day it may be hard for the fund to regain its up trend in the near future.

With the US markets relatively flat in the past year, US investors have been spreading their money more into foreign investments An investigation into possible irregularities at Internet firm Livedoor, caused the shock in the Japanese markets and could scare away foreign investors from Japanese shares. In 2005 some of these foreign sectors far outperformed the US markets. The only sector in the US markets that performed well last year was the energy sector.

The sector that has performed the best this year is the Energy Sector. Some Exchange Traded Funds in this sector are already up over 10% for the year. With increasing tensions in the middle east, the energy sector may be getting ready to have a run up in 2006, like it did in 2005. If this trend continues money may flow into this sector.

Other sectors that are performing well so far this year are the Latin American sector and the Telecommunications sector.

The panic selling in the Japanese markets has reached a climax. There will be a rebound, it remains to be seen how much of a rebound the Japanese markets can sustain after the large down volume day.

Visit http://www.exchangetradedfundinvesting.com for the latest ETF news and the latest market conditions affecting Exchange Traded Funds.

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