ETF Tracker StatSheet
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ENDING GREEN OCTOBER WITH A BANG
- Moving the markets
The major indexes managed to dig themselves out of an early hole to end the month of October in the positive with the S&P 500 gaining some 6.9%, while the Dow and Nasdaq posted similar advances.
Despite a few wobbles mid-month, the major up trend was never in danger of being broken, so the bulls made it through the historically most volatile time of the year, namely September and October.
More record highs were set today, as the markets notched their best month of 2021. Today’s comeback of the Nasdaq was especially surprising, as some of the disappointing results and guidance of tech heavyweights like Apple and Amazon pushed prices into the red early on. However, at the end of session, dip buyers made sure that a green close provided the positive backdrop for a solid month.
Earnings season turned out to be the driver for this bullishness, because about half of the S&P 500 reported results showed that more than 80% of them beat earnings estimates, thereby having navigated any headwinds successfully.
The US Dollar bounced back from recent losses and gained 0.83%, while bond yields slipped, as the 10-year dropped to 1.558%. The dollar’s strength hurt gold with the precious metal dipping 1% and again losing its $1,800 level.
We are now entering the seasonally strong period for equities, and we may see further gains, because early on in an inflationary environment, stocks seemed to be the beneficiary, a trend which can end in a hurry once bond yields reverse and spike. This is usually followed by a slowdown in economic activity, which affects the bottom line of companies and therefore stock prices.
On a personal note, due to time constraints, I will not be able to post tomorrow’s “ETFs on the Cutline” report.
2. ETFs in the Spotlight
In case you missed the announcement and description of this section, you can read it here again.
It features some of the 10 broadly diversified domestic 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 these ETFs are fluctuating 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:
Click image to enlarge.
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 TTIs slipped due to the weekly recalculation of the respective trend lines.
This is how we closed 10/29/2021:
Domestic TTI: +6.51% above its M/A (prior close +7.30%)—Buy signal effective 07/22/2020.
International TTI: +3.42% above its M/A (prior close +4.36%)—Buy signal effective 07/22/2020.
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.
All linked charts above are courtesy of Bloomberg via ZeroHedge.
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