- Moving the markets
While the major indexes recovered form an early session dump, they pretty much repeated yesterday’s theme by slipping and sliding below the unchanged line without much directional conviction.
A mixed earnings picture today, along with some negative tweets from Trump regarding a possible China deal, added to today’s uncertainty and kept equities in a tight range.
As a I posted before, tomorrow will be the most important trading day of the year, as the Fed is scheduled to release its verdict on interest rates. Opinions as to its market effect and whether they should or shouldn’t cut rates have been all over the place.
ZH offered a comparison to the events of 1987 via this chart posing the question: Is the Fed rate-cut enough to make new highs in stock…just like we did in 1987?
We should know the answer to that in the very near future.
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 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.
For this current domestic “Buy” cycle, here’s how some our candidates have fared:
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%.
3. Trend Tracking Indexes (TTIs)
Our Trend Tracking Indexes (TTIs) were mixed with the Domestic one gaining a tad, while the International one slipped.
Here’s how we closed 07/30/2019:
Domestic TTI: +7.63% above its M/A (last close +7.56%)—Buy signal effective 02/13/2019
International TTI: +4.09% above its M/A (last close +4.67%)—Buy signal effective 06/19/2019
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 specified guidelines.
Contact Ulli