The rebound continued over the past week, in part fueled by positive news out of Greece, as well as quarter-end window dressing by portfolio managers. While the major market ETFs had a nice run, the rally is somewhat suspect as it was accompanied by not much conviction due to low volume.
Of course, nothing has been really resolved with the Greek debt circus, but the inevitable has been postponed for the time being, and traders on Wall Street are happy about it.
On the HV Cutline, some of the heavyweight indexes have moved back above their long-term trend line.
To clarify, High Volume (HV) ETFs are defined as those with an average daily volume of $10 million or higher.
These ETFs are generated from my selected list of 90 that I use in my advisor practice. It cuts out the “noise,” which simply means it eliminates those ETFs that I would never buy because of their volume limitations.
Here are some of the movers and laggards of the last week:
VEU (Foreign Large Blend) from -3 to +10
IEV (S&P Europe 350) from -5 to +6
IOO (S&P Global 100) from -9 to +4
And remaining in the basement was BRF (Brazil Small Cap), which held on to its -15 position.
Take a look at the table, and then I’ll point to a few ETFs (above the +20 position) with positive momentum numbers and where to find them:
Be sure to check today’s Master ETF list in the StatSheet, which will be posted this evening. Using yesterday’s data, the following ETFs have shown the most improvement in terms of momentum figures and low DrawDown percentages:
IDX, XRT and EWM
While the numbers may change slightly, depending on today’s market activity, keep those ETFs on your radar should this rally continue next week. If you decide to make an investment, be sure to follow my recommended sell stop discipline, in case the market runs into overhead resistance.
If you are a new reader and missed the original Cutline report, which also featured some “how to use” information, please review it here.
Disclosure: Holdings in EWMContact Ulli