The chart below clearly shows that the FED's daily POMO injections are lifting U.S. based asset classes far above reasonable levels. In fact, even the usual emerging market leaders are being left in the dust despite having much better economic fundamentals.

Most interesting that gold miner stocks, natural gas, and oil would make this "poor performers" list as J.P. Morgan would be directly involved in these specific ETF's.

Regards - VHF

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Emerging Markets Not Participating In Global Rally

B.I.G.

February 10, 2011

Of the nearly 200 key ETFs across all asset classes that we track, more than 75% are currently trading above their 50-day moving averages. Below we highlight the ETFs that are currently in the minority and trading more than 2% below their 50-days. As shown in yellow, the majority of the ETFs that are struggling track indices or markets outside of the US. Most of these are emerging market related. India's INP is the farthest below its 50-day at -12.36%. Natural Gas (UNG) ranks 2nd worst at -9.26%.

It's not the emerging markets in one region of the world that are struggling either. ETFs that track Brazil, Latin America, China, India, and Asia Pacific are all below their 50-days. Typically when the US market is rallying, emerging markets are rallying even more. Bulls looking to outperform the S&P 500 have been using emerging market securities to do so for multiple years now. Recently, however, this strategy has been a performance killer.