1. Moving the Markets
The bulls were clearly in charge, and the major indexes managed to build on yesterday’s gains with the S&P 500 pushing through the 2,100 level again by adding another 0.75%.
Despite the same old useless jawboning by the Fed about their intentions, or lack thereof, of hiking rates in the fall, traders simply assumed that no announcement basically confirms that the economy is not firing on all cylinders and does not warrant an increase in rates—at least, that’s the view for the time being.
While the indexes briefly dipped after the Fed announcement, buying resumed and we climbed steadily for the remainder of the session. All of the 10 S&P sectors closed above the unchanged line with the leaders being industrials and energy.
In a repeat performance from yesterday, all of our 10 ETFs in the Spotlight closed up again led by the Mid-Cap Value (IWS) with +1.09%. Lagging the bunch was Healthcare (XLV) with a meager +0.17% gain.
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) continued their move deeper into bullish territory and closed as follows:
Domestic TTI: +1.43% (last close +1.13%)—Buy signal effective 10/22/2014
International TTI: +1.05% (last close +0.73%)—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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