1. Moving the Markets
Markets continued to rally as the S&P recorded its 30th record high of the year and closed above the 2000 mark for the first time ever. Investors were encouraged Tuesday by more “tasty” corporate M&A news (i.e. Burger King) and a jump in consumer confidence and durable goods orders.
Regarding Burger King (BKW), the U.S.-based restaurant chain officially announced today that it agreed to merge with the Canada-based Tim Hortons restaurant chain. The $11 billion deal is poised to create the world’s third-largest fast-food company that should realize about $23 billion in annual sales from 18,000 restaurants in over 100 countries. Take a bite out of that! Tim Hortons’ (THI) stock surged 8.5% to close at $81.05, and Burger King’s (BKW) stock fell 4.3% to $31.00.
In economic news, consumer confidence rose for the fourth-straight month as the Conference Board’s closely watched index jumped to a seven-year high in August. Also, we heard today that orders for durable goods soared 22.6% in July on strong demand for commercial aircraft.
7 of our 10 ETFs in the Spotlight gained with 5 of them again 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 inched higher and closed as follows:
Domestic TTI: +3.24% (last close +3.09%)
International TTI: +2.85% (last close +2.68%)
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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