ETF Tracker StatSheet
You can view the latest version here.
PUMPING INTO THE WEEKEND
- Moving the markets
Aimless meandering, even though above the unchanged line, turned into a late session ramp with the major indexes pushing higher, led by the S&P 500, with all three of them ending the day with solid gains.
Despite a terrible CPI report, the S&P 500 managed to score another record high and posted its best week since February. Yes, inflation hit a 39-year high, as prices climbed at their fastest pace since 1982.
As ZeroHedge noted, this morning’s CPI, after having surged faster than expected in 7 of the last 8 months, is the last big release ahead of next Wednesday’s Fed decision on interest rates and possibly an increase in tapering.
The Consumer Price Index printed at +6.8% YoY, which was a tad better than expectations of 6.9%. The Core CPI, without food and energy, still rose at a 4.9% clip, its highest since 1991.
Bond yields swung wildly with the 10-year almost touching 1.45% at the low end and 1.52% at the high end, but it settled at 1.485%, just about below the unchanged line.
The US Dollar followed a similar pattern but ended close to its lowest level of the session and gave back 0.22%.
Gold, after some early weakness, suddenly dashed higher mid-day and gained 0.34%. However, the move was not enough for the precious metal to recapture its $1,800 level.
As I posted before, during early periods of rising inflation, stock markets will benefit but, once this process accelerates causing bond yields to spike out of control, markets will collapse.
That’s why we must be prepared to execute our exit strategy, whenever our Trend Tracking Index (TTI) signals that critical moment in time.
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 advanced with the major indexes closing out the week with a bang.
This is how we closed 12/10/2021:
Domestic TTI: +5.18% above its M/A (prior close +4.86%)—Buy signal effective 07/22/2020.
International TTI: +1.12% above its M/A (prior close +1.02%)—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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