1. Moving the Markets
In an abrupt reversal from yesterday’s pullback, the markets shifted into high gear and never looked back, as reports of alleged positive debt negotiations in Greece proved to be a sufficient driver to overcome the bearish crowd and recoup some of the losses. The main beneficiary was the Nasdaq which saw enough positive momentum to close at an all-time high.
Despite denials from various sources that a Greek deal was not imminent, it did not matter, the trend was up and nothing was going to interfere with the indexes making up some of the losses. Of course, it remains to be seen what market reaction will be, should negotiations end in disappointment.
All of our 10 ETFs in the Spotlight did an about face and closed up. Leading the group was Healthcare (XLV) with a gain of 1.16%, while iShares Select Dividends (DVY) lagged but still rallied 0.52%.
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:
The above table simply demonstrates the magnitude with which some of the ETFs are fluctuating in regards to their positions above or below their respective individual trend lines (%M/A). A break below, represented by a negative number, shows weakness, while a break above, represented by a positive percentage, shows strength.
For hundreds of ETF/Mutual fund choices, be sure to reference Thursday’s StatSheet.
Year to date, here’s how the above candidates have fared so far:
Again, 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 has been taken out in the “Off High” column.
3. Trend Tracking Indexes (TTIs)
Our Trend Tracking Indexes (TTIs) recovered and closed up ending this rebound day as follows:
Domestic TTI: +2.76% (last close +2.30%)—Buy signal effective 10/22/2014
International TTI: +4.97% (last close +4.19%)—Buy signal effective 2/13/2015
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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