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, November 8, 2013
BULLS SMILE BRINGING A HEARTY SALUTE TO VETERANS DAY
1. Moving The Markets
The major indexes all closed on a bullish note today rebounding 1%+ as the weekly chart above shows. Stocks were higher on the week, led by the increase in basic materials stocks. Equity ETF funds saw substantial outflows last week as the Dow Jones Industrial Average hit record highs.
In corporate news, Twitter and BlackBerry represented two extremes. Twitter’s much anticipated IPO was a soaring success. Not only was it 100% glitch-free, which was a major focus after Facebook’s IPO faced technical problems last year, but more important, the social media firm’s shares soared, rising 73% from the initial price of $26 per share.
Although Twitter still hasn’t turned a profit, millions of investors are betting on its potential.
In contrast, BlackBerry’s executives’ faces turned red, as the once-dominant Smartphone maker continued to stumble, unable to attract financing for a planned $4.7 billion sale
The U.S. economy added 204,000 jobs in October, much more than the 125,000 expected. However, the unemployment rate rose to 7.3% in October from 7.2% in September.
While market volatility could certainly resurface at any time, it’s interesting to note that years with returns over 20% during the first 10 months continued that strong performance through the end of the year, historically recording a return of about 6% the last two months.
Let’s look at the ETFs in the spotlight:
2. ETFs in the Spotlight
In case you missed the announcement and description of this section, you can read it here again.
It features 10 broadly diversified ETFs from my HighVolume list as posted every Monday. Furthermore, they are screened for the lowest MaxDD% number meaning they have been showing better resistance to temporary sell offs than all others over the past year.
In other words, all of them never triggered their 7.5% sell stop level during this time period, which included a variety of severe market pullbacks but no move into outright bear market territory.
Here are the 10 candidates:
All of them are in “buy” mode meaning their prices are above their respective long term trend lines by the percentage indicated (%M/A).
Now let’s look at the MaxDD% column and review the ETF with the lowest drawdown as an example. As you can see, that would be XLY with the lowest MaxDD% number of -5.73%, which occurred on 11/15/2012.
The recent sell off in the month of June did not affect XLY at all as its “worst” MaxDD% of -5.73% still stands since the November 2012 sell off.
A quick glance at the last column showing the date of occurrences confirms that five of these ETFs had their worst drawdown in November 2012, while the other five were affected by the June 2013 swoon, however, none of them dipped below their -7.5% sell stop.
Year to date, here’s how the above candidates have fared so far:
With Thursday’s sell off and Friday’s rebound, only SPY managed to close at new highs for the year as the “Off High” column shows. All others have pulled back slightly.
3. Domestic Trend Tracking Indexes (TTIs)
Trend wise, our Trend Tracking Indexes (TTIs) slipped but remain above their long term trend lines by the following percentages:
Domestic TTI: +3.98% (last week +4.33%)
International TTI: +6.48% (last week +7.37%)
Have a great week.
Ulli…
Disclosure: I am obliged to inform you that I, as well as advisory clients of mine, own some of these listed ETFs. Furthermore, they do not represent a specific investment recommendation for you, they merely show which ETFs from the universe I track are falling within the guidelines specified.
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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 Ron:
Q: Ulli: With the daily commentary changes mentioned this week, will the fund tracker and cutline reports no longer be published or accessible? Thanks, and I truly enjoy reading your articles.
A: Ron: No, all reports will remain the same as before; the new commentary is simply an enhancement. You were probably looking for the StatSheet Thursday night; I got behind schedule and posted it this morning.
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