Another Successful Dump And Pump

Ulli Market Commentary Contact

[Chart courtesy of]
  1. Moving the Markets

In a repeat from yesterday, the early market dump gave way to the usual pump to ensure that the major indexes closed in the green as it appeared that the BTD (Buy the Dip) crowd was out in full force. The Dow managed to kiss its 50-day M/A for the second day in a row and successfully used it as a springboard to eke out a small gain for the day.

Across asset classes, the retail sector (XRT) got clobbered again and lost -0.91%; the 10-year Treasury yield inched higher by +0.43% and oil gained +1.71% on news that inventories are allegedly seen declining. The dollar index was mainly flat throughout the session but closed slightly higher and remains above its psychologically important 100 level.

Precious metals gained again with gold now honing in on the 1,260 mark. Overall, things were slow on Wall Street with all eyes being on the upcoming China meeting, Friday’s payroll report followed by the start of the earnings season next Monday.

  1. ETFs in the Spotlight (updated for 2017)

In case you missed the announcement and description of this section, you can read it here again.

It features 10 broadly diversified and sector ETFs from my HighVolume list as posted every Saturday. 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.

The below 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 choices, be sure to reference Thursday’s StatSheet.

Year to date, here’s how the 2017 candidates have fared so far:

Again, the %M/A column above shows the position of the various ETFs in relation to their respective long term trend lines, while the trailing sell stops are being tracked 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.

  1. Trend Tracking Indexes (TTIs)

Our Trend Tracking Indexes (TTIs) barely changed, as making up early losses was the theme of the day.

Here’s how we closed 4/4/2017:

Domestic TTI: +2.41% (last close +2.42%)—Buy signal effective 4/4/2016

International TTI: +5.15% (last close +5.16%)—Buy signal effective 7/19/2016

Disclosure: I am obliged to inform you that I, as well as my advisory clients, own some of the ETFs listed in the above table. 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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