ETF Tracker StatSheet
BUILDING ON LAST WEEK’S ADVANCE
- Moving the markets
At least for the time being, Wall Street traders managed to shake off the headwind known as ‘trade disagreements’ and push equities higher, not just this week, but also sporting gains the last six out of seven trading days. The exception was last Wednesday, when markets dumped, but they were pumped higher instantly on Thursday thereby eliminating any doubt as to whether bullish momentum was impaired or not. However, when looking at this chart, I agree with ZH’s question: What happens next?
Two milestones were reclaimed today, namely the Dow’s 25k level and the S&P’s 2.8k marker, while the Nasdaq powered to a new record all in anticipation that the earnings season will not be disappointing, although early reads have been mixed at best.
For the week, the Dow led the major indexes with +2.3%, followed by the Nasdaq with +1.8% and the S&P 500 (+1.5%) concluding two consecutive weekly advances for all of them.
Let’s be clear, the variety of trade issues are far from having been resolved and will likely remain a concern, which may pop up suddenly during the next few weeks and curtail “the running of the bulls.” How much of an effect this will be on equities obviously depends on whether trade disputes are turning into trade wars or are simple negotiation ploys.
On the other hand, ever since Trump started initiating tariffs, bonds and stocks have rallied bringing up the question: Will more tariffs drive the markets higher? This chart implies tongue in cheek that they might.
Go figure…
- 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 regarding 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) were mixed with the Domestic one slipping and the International one gaining a tad. That gain was not enough to bring an end to the current “Sell” cycle.
Here’s how we closed 07/13/2018:
Domestic TTI: +2.69% above its M/A (last close +2.75%)—Buy signal effective 4/4/2016
International TTI: +0.28% above its M/A (last close +0.10%)—Sell signal effective 6/28/2018
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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