ETF Tracker StatSheet
https://theetfbully.com/2018/03/weekly-statsheet-etf-tracker-newsletter-updated-03-01-2018/
SQUEEZING THE SHORTS SAVES THE DAY
- Moving the markets
The session started out with another downside hit, but ended with a slow but steady crawl higher and above the unchanged line with only the Dow lagging to register its 4th day in a row closing in the red. The culprit, accounting for a 50-point bite out of the Dow, was McDonald’s loss of -4.8% its biggest one-day percentage drop since October 2008.
As is usually the case, extreme market moves to either side can be overdone, as was the case this week. In the end, we saw the shorts being massively squeezed, which had to cover and contributed to today’s rebound, along with a sudden overriding view that the reaction to the tariff announcements was probably overdone.
Markets around the world were hard hit with especially Germany’s DAX tumbling some 13% in the last few weeks, almost 6% this week, since a large part of their economy is export-driven. Be that as it may, tariffs are not a good thing, despite Trump’s assertion that they “are good and easy to win.” Yet most investors are unaware of the consequences. In 2002, President Bush imposed 30% steel tariffs; you can read here what happened next and why the tariffs were reversed.
The 10-year bond yield jumped 5 basis points today to close at 2.86%, but thanks to slipping earlier in the week they ended the past 5 sessions 2 basis points lower. Also helping the market recover was a spanking of the VIX, which was pushed down from a high of 26 to 19. Despite slipping -0.42% today, the US Dollar ended the week higher for the 4th of the last 5 weeks.
So far, no damage was done to our current holdings in regards to their trailing sell stops, and we’ll have to wait and see how this tariff tantrum plays out next week.
- 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 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 our 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.
- Trend Tracking Indexes (TTIs)
Our Trend Tracking Indexes (TTIs) edged higher as the major indexes managed to rebound modestly.
Here’s how we closed 3/02/2018:
Domestic TTI: +2.54% above its M/A (last close +2.33%)—Buy signal effective 4/4/2016
International TTI: +1.88% above its M/A (last close +1.86%)—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.
————————————————————-
READER Q & As
All Reader Q & A’s are listed at our web site!
Check it out at:
https://theetfbully.com/questions-answers/
———————————————————-
WOULD YOU LIKE TO HAVE YOUR INVESTMENTS PROFESSIONALLY MANAGED?
Do you have the time to follow our investment plans yourself? If you are a busy professional who would like to have his portfolio managed using our methodology, please contact me directly or get more details at:
https://theetfbully.com/personal-investment-management/
———————————————————
Back issues of the ETF/No Load Fund Tracker are available on the web at:
https://theetfbully.com/newsletter-archives/
Contact Ulli