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, July 18, 2014
MARKETS CLOSE OUT A TUMULTUOUS WEEK ABOVE WATER
1. Moving the Markets
Markets were up and down this week, reacting to a range of factors. Solid earnings results from many large U.S. companies, as well as better-than-expected U.S. manufacturing readings and upbeat GDP suggesting the Chinese economy is stabilizing all helped support stocks.
Grabbing much of the attention, however, were geopolitical concerns – including news of the downed Malaysia Airlines passenger jet near the Russia-Ukraine border and the Israeli ground invasion into the Gaza Strip – which dragged markets lower mid-week, as the 5-day chart above shows.
In M&A news, we heard today that U.S. drug maker AbbVie Inc (ABBV) bought Dublin-based Shire Plc (SHPG) in a 32 billion pound ($54.7 billion) deal. The merged group will also have more firepower for acquisitions, particularly to bolster the rare disease business, the foundations of which were built on acquisitions by Shire.
In the week to come, international conflicts will certainly be watched closely for developments, while a minimum amount of economic data reports will direct the market’s attention to a busy week for corporate earnings announcements. Inflation data may grab some headlines on Tuesday with the release of the consumer price index for June.
Our 10 ETFs in the Spotlight went predominantly sideways with none of them making a new high for the day.
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.
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).
Year to date, here’s how the above candidates have fared so far:
To be clear, the first table above shows the position of the various ETFs in relation to their respective long term trend lines (%M/A), while the second one tracks their trailing sell stops in the “Off High” column. The “Action” column will signal a “Sell” once the -7.5% point is taken out in the “Off High” column.
3. Domestic Trend Tracking Indexes (TTIs)
Our Trend Tracking Indexes (TTIs) changed only slightly from last week’s close:
Domestic TTI: +2.90% (last Friday +3.05%)
International TTI: +3.35% (last Friday +3.05%)
Have a nice weekend.
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 Tarantola:
Q: Ulli: The performance of the ETFs in the Spotlight is impressive. Do you have any suggestion on how some or all of them might be included in a portfolio? Or could they form a portfolio in themselves?
A: Tarentola: I can’t give direct advice, since I don’t know your circumstances. You should make your selections based on your risk tolerance. Sure, you could use all of them, if you have a larger portfolio or just some of them.
As a general observation, most investors diversify too much. For example, for a $500k portfolio, I have used as few as 4 ETFs. Whatever your mode of operation, be sure to use my recommended sell stop discipline.
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Do you have the time to follow our investment plans yourself? If you are a busy professional who would like to have his portfolio managed using our methodology, please contact me directly or get more details at:
https://theetfbully.com/personal-investment-management/
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Back issues of the ETF/No Load Fund Tracker are available on the web at:
https://theetfbully.com/newsletter-archives/
Contact Ulli