ETF/No Load Fund Tracker StatSheet
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THE LINK TO OUR CURRENT ETF/MUTUAL FUND STATSHEET IS:
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Market Commentary
Friday, April 8, 2011
MAJOR MARKET ETFs LACKING A PULSE
This week turned out to be a non-event, as far as the direction of the major market ETFs was concerned, as the last five trading days ended with the S&P 500 losing a whopping -0.03%.
The action was definitely to be found in the energy, precious metals and commodities’ sectors, as prices in ETFs representing these areas rocketed higher.
Gold surged to over $1,470 for the first time, while silver breached the $40 level for the first time in some 31 years. Not to be outdone, crude oil headed to within striking distance of $113/barrel. As a result, the Transportation ETF (IYT) took a turn south. If you follow historical events, you might want to keep an eye on IYT, as it lead the markets lower before the crash in 2008.
High gasoline prices, and the impending government shutdown, caused anxiety and uncertainty about economic prospects and did not create a cheery mood among investors for the upcoming week.
Our Trend Tracking Indexes (TTIs) meandered in opposite direction but stayed in bullish territory by the following percentages:
Domestic TTTI: +4.27% (last week +5.11%)
International TTI: +5.85% (last week +5.37%)
Next week, we’ll be facing the eagerly anticipated earnings season along with a host of economic reports. On the menu are Import/Export prices, Treasury budget, retail sales, initial claims, PPI/CPI and industrial production, just to name a few. Throw in a few hostilities from the various global hotspots, and there is a good chance that volatility will return to the market place.
As of this writing, the government shutdown still looms and, if it actually comes to pass, may very well have some kind of effect on investor sentiment when the markets reopen next Monday.
Have a great week.
Ulli…
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READER Q & A FOR THE WEEK
All Reader Q & A’s are listed at our web site!
Check it out at:
http://www.successful-investment.com/q&a.php
A note from reader Joe:
Q: Ulli: WOW! This (ETFs on the Cutline) is a gold mine as far as I’m concerned! Really helpful!
But I have a question. I have always wondered why there is no single mutual fund or ETF that takes data like this and puts together a small number of positive cutline funds to form a diversified portfolio of stock and income funds that have positive momentum. I can’t imagine that that would be too difficult to set up and manage.
I know of no fund or ETF that, for example, has a portfolio of small cap, mid cap, large cap, real estate, commodities, international and various income funds that are bought and sold as their momentum (cutline) shifts and changes.
Is that asking too much? When you find one that does, please let me know about it. It sure would make life easier for the small investor.
Many thanks again for your wonderful service.
A: Joe: Usually, at the beginning of a buy cycle, that’s how you should pick the funds/ETFs. Then you make adjustments as you go along.
However, starting next week, on Wednesday, I’ll be featuring 5 model portfolios, which will be updated regularly. Look for it…. J
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Contact Ulli
Comments 3
The answer to reader Joe’s question is that there is a family of mutual funds that are funds of funds (and/or ETFs) that follow market strength: the Noload FundX family by DAL investments. The market strength criteria may be a little different than Uli’s, but very similar. As fund of funds, they have two layers of expense ratio, but that is the price for their management.
I should also mention that the Noload Fundx philosphy is to stay fully invested, not to get out off the market with sell stops or major trend.
The No Load Fund X funds are REALLY not doing well at all. They might sound like a great idea, but they have NOT performed well. I tried it out with $5K and I am stuck.
The concept is the greatest, but they win sometimes. I did a lot of diligence, tracking, tracing their moves, and then finally put in $5K.
Please do more work…..Ulli’s method might work better since he is offering investments in MF, ETFs, International, Sector, Country and Bonds. And, it is better to be in all/most of those to be nicely diversified.
Plus Ulli’s method can work in 401(k) also where the No Load Fund X timing or funds cannot be applied well.
Kenny