Good Morning!

The dance continues and the latest has the fate of the U.S. debt situation inthe hands of Congress. As of now it is anyone’s guess as to when a deal getsdone. That being said, I am very optimistic some type of deal will be reachedin the next day or two and a default will be avoided. As you may suspect thisis good for the market and is a big reason the major indices are up over 1percent this morning.

With all the volatility in the stock market the one constant has been the MarkETForce ETF Portfolio.  The portfolio is beating the S&P 500 by 324basis points since its inception on 7/22/13 (as of yesterday’s closingprices). If this outperformance continues it equates to the MarkETForcePortfolio beating the S&P 500 by over 14 percent or 1400 basis pointsannually.

Considering the risk the portfoliotakes is not high and that there is currently 21 percent in cash, we could notbe happier with the performance.

Here is a look at where the MarkETForce ETF Portfolio stands today:

WisdomTree Japan Hedged Equity ETF (DXJ) is currently the only positionin negative territory with a loss of 1%. The ETF has been consolidating for thelast week and if it can break above $50 it will be a very bullish signal.

SPDRS&P Oil & Gas Equipment & Services ETF (XES)is up 5.3% and closed at a 2-year high on Monday. The oil and gas stocks shouldcontinue their uptrend even as oil struggles to move higher. If oil is to beginmoving up in price we expect XES to surge to new highs again.

SPDRInsurance ETF (KIE) is up 3.3% and breaking out today tothe best level since 2007. We have been waiting patiently for this breakout andit has finally arrived. We plan on letting KIE run as the news out of thesector and the related financial stocks has been positive.

DBGold Short ETN (DGZ) is up 1.8% as the price of goldcontinues to fall. Not even a near government default and a shutdown could lureinvestors back into the precious metal. The outlook for gold is not good andDGZ will be the beneficiary.

FirstTrust Global Auto ETF (CARZ) has a gain of 7.2%and continues to show relative strength versus the overall market. Auto salesnumbers out of Europe last night came in at the best level in two years andthat coupled with the government shutdown ending soon will be a new boost tothe sector.

iSharesUS Regional Bank ETF (IAT) is up 0.5% and hitting a new 2-monthhigh today. As earnings continue to come in for stocks in the sector, theoutlook is improving. If IAT can hold above $30.50 it would confirm the latestbreakout and it should test the high of $32 set earlier this year.

iSharesMSCI Europe Financials ETF (EUFN) is up 4.6% and hitting a new high today. We continue tofavor the European financials over their peers based on valuation and thepotential upside in the coming year. By the time this sector begins to lookmore “safe” we will already have made our big gains.

Guggenheim Timber ETF (CUT) is up 2.7% and the ETF hit its best intradaylevel since 2007 this morning. CUT remains one of our favorite megatrend ETFsfor the long-term investor.