I added a new position today: ITB, an ETF that tracks the homebuilding sector:
The ETF above is making a new multi-year high and is, by any definition, in an uptrend. Another ETF that is similar, but appears slightly weaker is XHB.
Second, shorting the ETF VXX is also a good bet, in my view:
Because ETFs such as VXX tend to erode in value over time, you can benefit from this by simply shorting them. The red area above shows that the ETF has done a poor job at tracking the actual VIX index (which can be found on Stockcharts.com by typing in $VIX).
Lastly, note that whenever VXX formed an island top, much lower prices followed.
