ETF/No Load Fund Tracker StatSheet
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Friday, April 27, 2012
MAJOR MARKET ETFS END WEEK ON A HIGH; GLDX RISES, DXJ SINKS
US stocks advanced Friday, extending weekly gains as strong corporate earnings outweighed disappointments over weaker than expected first-quarter GDP growth.
Treasury 10-year notes settled lower after hitting a twelve week high triggered by European contagion fears.
The Dow Jones Industrial Average (DJIA) climbed 0.2 percent to close the week at 13,228.31, up 1.5 percent for the week with Cisco Systems (CSCO) leading the pack. This is the blue-chip index’s second straight week of gains. 19 stocks of the 30-component index closed higher while consumer-goods company Procter & Gamble Co (PG) dropped the most, losing 3.6 percent on the day over weak 2012 guidance.
The S&P 500 Index (SPX) climbed 0.2 percent to 1403.36 with online travel company Expedia (EXPE) and e-retailer Amazon (AMZN) gaining the most, adding 23 percent and 15 percent respectively.
The tech-heavy NASDAQ Composite Index (COMP) rose 0.6 percent, up 2.3 percent over last Friday.
Yield on the benchmark 10-year notes settled 0.01 percentage point lower at 1.93 percent for the week, after tumbling to a near three-month low of 1.88 percent.
Yield on 30-year bonds settled at 3.06 percent, a level last seen on March 29. Latest government data showed the economy expanded at a slower 2.2 percent annualized rate in the Jan-March quarter against an expected 2.7 percent growth, a negative fact which was simply ignored by the markets.
ETFs in the news:
The United States Natural Gas Fund LP (UNG) gained the most for the day, jumping 3.1 percent for the day. Natural gas has seen some strength off late with prices going up by about 15 percent over previous week.
A cooler-than-normal spring forecast has pushed UNG higher, pushing up related ETFs across the board. The premium laden iPath Dow Jones UBS Natural Gas Subindex Total Return ETN (GAZ) also ended in the positive territory, despite tumbling lower in early trade.
The Global X Gold Explorers ETF (GLDX) rose 3.73 percent, extending its winning streak for the third straight day. The small-caps-underlying ETF has managed to recover some of its losses suffered early this month. GLDX has seen wild day-to-day swings in recent times and you better watch it from the sidelines, if volatility is not your cup of tea.
Among the day’s top losers, the WisdomTree Japan Hedged Equity ETF (DXJ) stayed on top of the heap, losing 1.26 percent for the day. DXJ tracks the WisdomTree Japan Hedged Equity Index, which provides access to Japanese equity along with hedging protection against fluctuations from the Japanese yen. This ETF leads when the Yen weakens, but lags when the currency strengthens against the greenback.
The iShares Dow Jones U.S. Healthcare Providers Index Fund (IHF) closed 0.91 percent lower after its 10th largest position, Coventry Health Care, tumbled eight percent on missed earnings target. Its number four holding Aetna also slipped 3 percent on strong selling pressure.
Our Trend Tracking Indexes (TTIs) followed the major indexes higher, and both remain above the line and in bullish territory. Here are this week’s closing numbers:
Domestic TTI: +5.38% (last week +4.60%)
International TTI: +4.00% (last week +3.23%)
Have a great week.
Disclosure: No holdings
READER Q & A FOR THE WEEK
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A note from reader Duffy:
Q: Ulli: First thanks for your time and effort in providing your newsletter. On the 4-20-12 Cutline report, within the first three mutual funds, I see (UOPIX, and RYVYX) with a DD% of 7.84 and 7.83; would these have not stopped out at our 7% limit? DD% is draw-down from high?
A: Duffy: Yes, you are correct, however, but I am just reporting what the numbers are, so, if you had owned these funds from the beginning of the cycle, then you would be selling now.
If you had purchased them at a later date, then your high point, from which to calculate the sell stop, would be different.
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