ETF/No Load Fund Tracker StatSheet
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Friday, March 9, 2012
EQUITY ETFs PUSH HIGHER ON STRONG JOBS DATA; REMX UP AS MATERIALS GAIN, VXX TUMBLES
U.S. stocks closed higher for the third straight session on Friday after a stronger-than-expected monthly jobs report confirmed a recovery that’s gaining momentum.
Gains were trimmed in late trading after Greece’s debt-swap deal was announced a “credit event” since Athens exercised the so-called collective action clause (CAC) forcing some creditors to accept losses.
The Dow Jones Industrial Average (DJIA) was up 0.1 percent to 12,922.02, with 20 out of 30 components advancing while the S&P 500 Index (SPX) advanced 0.4 percent to 1370.87, eking out its fourth weekly gain.
Treasuries ended up lower for the week as U.S. payrolls beat analysts’ expectations, adding 227,000 non-farm jobs for the third consecutive month. This fueled speculations of the Fed pausing monetary stimulus as growth gains pace. 10-year note yields hit the highest weekly level as risk sentiments improved after Athens announced it has reached its target for the biggest sovereign debt restructuring in history.
ETFs in the news:
Market correlated sectors like minerals are doing well as stock indexes continue to rise. The Market Vectors Rare Earth/Strategic Metals ETF (REMX) emerged the day’s top-performer, adding 4.77 percent on the day. Other producer linked ETFs like SPDR S&P Metals & Mining ETF (XME) also performed well on the winner’s list.
The iShares Dow Jones U.S. Home Construction Index Fund (ITB) is back with a bang after struggling for weeks, adding 2.82 percent for the day. It has hit new 2012 highs after the past three days of gains.
The Guggenheim Solar ETF (TAN) added 2.85 percent on the day, its second day of gains, after suffering six days of downturn.
Among the day’s top losers, the fear-tracking iPath S&P 500 VIX Short Term Futures ETN (VXX) shed 1.93 percent as markets surged for the third straight day.
The iPath Dow Jones UBS Natural Gas Subindex Total Return ETN (GAZ) slipped 0.19 percent as high premium continues to weigh the product down.
Oil for April delivery surged 82 cents to $107.40 a barrel and Gold futures for April delivery ended $12.80 higher at $1,683.90 an ounce.
Our Trend Tracking Indexes (TTIs) remain on the bullish side of the trend line with the Domestic TTI hovering at +5.23 percent and the International TTI at +4.73%.
Have a great week.
Disclosure: No holdings
READER Q & A FOR THE WEEK
All Reader Q & A’s are listed at our web site!
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A note from reader Mike:
Q: Ulli: I just subscribed to your newsletter and have been reading your site and archives with interest.
I am very interested in your Aggressive ETF Growth Portfolio. I have accounts at Scottrade and Fidelity, so I’m able to purchase the ETF’s in the portfolio. What I don’t understand is when and what to buy or sell. Would you please point me in the right direction?
A: Mike: No problem. The what to buy is the easy answer as all ETFs are listed in the model portfolios. You should buy the domestic ETFs/bonds when our Domestic Trend Tracking Index (TTI) is in bullish territory, which it is.
The total amount of the investment is determined by your risk tolerance. I have a short video on that topic on my blog. Notice my welcome video on the right; then scroll down past the first ad and view the risk tolerance video.
Just because the market is in bullish territory does not mean it will stay there. So you need to protect yourself via trailing sell stops just as the matrix in the model portfolio shows. For domestic ETFs, I use 7%, for sector/country ETFs, I use 10% and for Bond ETF, I recommend 5%.
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