ETF/No Load Fund Tracker StatSheet
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Friday, March 22, 2013
INDEX ETFs ADVANCE ON EARNINGS AND CYPRUS DEAL HOPES; EUROPE SLIPS ON UNCERTAINTY
Equities rose Friday, trimming the second weekly drop of the year for the S&P 500 Index as corporate earnings beat street estimates and on optimism that Cyprus will reach a deal before Monday to rescue the nation’s troubled banks.
Nike Inc rallied 11 percent after the world’s largest sporting-goods manufacturer reported improved gross margin for the first time in nine quarters.
Micron Technology Inc surged 10.7 percent after the chipmaker reported sales that beat estimates even though its quarterly loss widened.
Cypriot officials began debating legislation that’ll help unlock bailout funds needed to prevent a banking collapse. Government spokesman Christos Stylianides said talks with the so-called troika of the European Union, the European Central Bank and the International Monetary Fund were in the final stages.
Talks between Cypriot finance minister and the Russian government broke down early Friday; with Moscow declining to commit fresh funding that could help the island nation avoid a default. Nearly one-third of Cyprus’ outsized banking sector is from Russian oligarchs.
The ECB has threatened to cut emergency liquidity measures for Cypriot banks after Monday unless it comes to an agreement with the troika of the EU, the ECB and the IMF.
The Dow Jones Industrial Average (DJIA) surged 91 points to 14,512, with 23 of its 30 components gaining for the day. The blue-chip index however, finished lower on the week, slipping less than 0.01 percent.
The S&P 500 Index (SPX) rose 11 points to 1,557 with consumer discretionary, consumer staples energy and telecommunications leading the gains among its 10 business groups. The benchmark index was down 0.2 percent for the week.
Treasuries changed little on Friday as investors grew confident about Cyprus’ ability to raise its part of the funds to secure the EUR 10 billion bailout, diminishing the allure of safe-haven assets.
Across the Atlantic, most European stock markets closed in the red as the Cypriot lawmakers struggled to meet the ECB’s Monday deadline for putting together a bailout plan.
One of the latest plans suggested by Cyprus was rejected by Germany. The island nation had proposed to bundle state assets and pension funds to form an investment fund that could be used as collateral for fresh bonds.
Additionally, Greece and Cyprus agreed to demerge Greek units of indebted Cypriot banks, protecting them from the potential levy on bank deposits.
Our Trend Tracking Indexes (TTIs) showed a mixed picture as the Domestic TTI held steady while the International TTI dropped. For the week, we closed as follows:
Domestic TTI: +3.50% (last week +3.51%)
International TTI: +8.40% (last week +10.50%)
Again, we will hold all equity ETF positions until our exit strategy signals otherwise.
Have a great week.
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 John:
Q: Ulli: I’m a long term follower of your work, which I really appreciate. I spend every Saturday reviewing your Stat Sheets. I noticed that you rank the various MFs/ETFs by M- Index on the Stat Sheets, while you rank them by % MA on the Cut Line Report… Why is that?
A: John: The reason is that you have a different view of the rankings. Some readers prefer looking at the Cutline report wanting to track those funds/ETFs that barely have or are about to cross their respective long-term trend lines to the upside, in order to get aboard early. Others prefer using the M-Index to make that decision. So, a different sorting order will better accommodate the various investing styles.
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