ETF Tracker StatSheet
ANOTHER DUMP AND A FAILED PUMP TO END THE WEEK
- Moving the markets
Volatility continued with the week ending on a sour note, as today’s early morning dump had the Dow down some 400 points, when suddenly a remarkable recovery out of nowhere turned the markets around reducing the Dow’s loss to some 80 points. As had been the case all week, the bears exerted their domination again by pushing the index back down to a closing loss of almost 300 points (-1.19%), while the S&P and Nasdaq fared worse, as the chart above shows. For the week, the S&P 500 surrendered -3.9%.
Getting things started to the downside were disappointing earnings reports by the tech powerhouses Amazon (-7.82%) and Google (-2.20%) with Amazon now entering bear market territory joining SmallCaps and the S&P 500. Globally, the fallout was even more dramatic, as over $8 trillion in asset values were wiped out.
All the major indexes have settled below their respective 200-day M/As with the S&P having dropped 15 times this month which, according to ZH, was the most for a full month since October 2008. However, this ugliness was broad based as their latest summary shows:
- Dow down 9% from record high (down 4 of last 5 weeks)
- S&P down 10.1% from record high (down 4 of last 5 weeks)
- Nasdaq down 13% from record high (down 4 weeks in a row)
- Dow Transports down 15.2% from record high (down 6 weeks in a row)
- Small Caps down 15.8% from record high (down 6 weeks in a row)
Right now, it looks to me that this volatility will stay with us at least until election time when, depending on the outcome and the interpretation thereof, should shed some light as whether we’ll be going further south or giving the bulls a chance to recover by pulling the market out of its doldrums and into the widely expected year-end rally.
Right now, it’s good to be on the sidelines.
- 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 -8% point has been taken out in the “Off High” column. For more volatile sector ETFs, the trigger point is -10%.
- Trend Tracking Indexes (TTIs)
Our Trend Tracking Indexes (TTIs) again headed south and are now firmly established in bear market territory.
Here’s how we closed 10/26/2018:
Domestic TTI: -5.35% below its M/A (last close -4.07%)—Sell signal effective 10/12/2018
International TTI: -6.97% below its M/A (last close -6.48%)—Sell signal effective 10/11/2018
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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