1. Moving the Markets
The Dow broke a five-session losing streak today as it reversed a nearly 170-point loss and turned positive despite growing angst related to next week’s “Brexit” vote in the U.K. Rising confusion over Fed policy and sagging economic growth around the globe has investors a bit in a state of shock to say the least.
Polls are showing that the odds of a Britain exit from the EU are rising and have caught global investors somewhat by surprise given that, just a few weeks ago, the majority of them did not anticipate an exit as a real possibility. Thus, money continues to flow into the perceived safety of government bonds around the globe, like 10-year German government bonds. The yield on the 10-year German government bond today hit a new record-low yield of -0.033% and the yield on the 10-year U.S. Treasury note slid to 1.57%, which pushes it further into territory last seen in late 2012.
Another day of falling prices in the oil added to the confusion regarding the global economy. A barrel of U.S. Crude lost a whopping 4.29% to close at $45.95 a barrel after topping the $52 per barrel mark just last week.
Go figure…
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 Domestic Trend Tracking Index (TTI) barely changed as the markets managed to come back and cross above the unchanged line after early losses. The International one dropped a tad, and I will continue to wait and see if the next move is higher or lower before calling an end to this latest “Buy” cycle.
Here’s how we closed:
Domestic TTI: +1.66% (last close +1.63%)—Buy signal effective 4/4/2016
International TTI: -1.55% (last close -1.40%)—Buy signal effective 6/7/2016
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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