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, August 29, 2014
STOCKS CONTINUE RIDING HIGH ON IMPROVING U.S. ECONOMY
1. Moving the Markets
Equities finished higher on the week, led by the increase in utilities and telecom stocks. The Dow rose 97 points to end the week at 17,098, up 0.6%. The S&P 500 increased 15 points, or 0.8%, to end at 2,003. In a week when the US economy showed renewed strength, the S&P 500 Index broke through the 2,000 milestone, despite escalating geopolitical tensions in Ukraine and Syria.
The pace of US economic growth in the second quarter was revised upward to a seasonally adjusted, annualized 4.2% from an initial estimate of 4.0%, the US Department of Commerce reported. Business spending on new buildings, machinery and research and development grew more than first estimated.
US economic reports also included improvements in two consumer confidence measures, though an unusually strong durable goods report was skewed by a large order for airplanes that will take years to fulfill. A slower pace of US home price increases, and a drop in the volume of new home sales, was seen as diffusing any potential US housing bubble.
One of the major M&A stories of the week was that of Burger King (BKW). Burger King Worldwide will buy Canadian coffee and doughnut chain Tim Hortons Inc. (THI), creating the world’s third-largest fast-food restaurant group, with $23 billion in combined annual sales and more than 18,000 restaurants in 100 countries. Burger King stands to save on corporate taxes by moving its headquarters to Canada, a controversial move known as a tax inversion.
9 of our 10 ETFs in the Spotlight managed to gain today with 4 of them making new highs for the year.
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 currently 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) again stayed with the uptrend and closed higher for the week:
Domestic TTI: +3.22% (last Friday +2.87%)
International TTI: +2.59% (last Friday +2.15%)
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
Reader Roger:
Q: Ulli: Could the ten Spotlight ETFs be used in a portfolio investment strategy or just for a piece of an overall portfolio?
Second, would you logically try to weight the percent investment in each by tracking an appropriate benchmark?
A: Roger: Sure, you can use it as a standalone portfolio, as some readers have done, or, you could use only those ETFs that are showing strong upward momentum, such as I do in my advisor practice.
More importantly, you need to follow my recommended sell stop discipline, to make sure you limit your downside risk should this bull market die all of a sudden.
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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/
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