ETF/No Load Fund Tracker StatSheet
————————————————————-
THE LINK TO OUR CURRENT ETF/MUTUAL FUND STATSHEET IS:
https://theetfbully.com/2011/03/weekly-statsheet-for-the-etfno-load-fund-tracker-2/
————————————————————
Market Commentary
Friday, April 1, 2011
ETFs RALLY INTO APRIL
Even though the major market ETFs closed out the month of March on a whimper, upward momentum shifted into high gear early in the morning of April 1st.
Providing the ammunition for this up move were the widely anticipated unemployment numbers, which came in better than expected. The Labor Department reported that the unemployment rate fell to 8.8% in March, while payroll employment increased by 216,000.
While that is a decent number, it’s finally a move in the right direction provided this tendency remains. However, what was not said is just as important. While investors cheered the report, below the surface lurk some potential troubles.
The reason for the continued drop in unemployment was a reduction in the participation rate.
What that means is that more people left the work force making the pool smaller. In other words, if more unemployed now become encouraged and start looking for work again, the unemployment rate will head higher as the pool of job seekers rises. Such is the oddity of measuring these figures.
While initial euphoria powered the indexes early on, the markets sold off in the afternoon as technology stocks pulled back, but we managed to close in positive territory. For the week, the S&P 500 gained +1.34%.
Our Trend Tracking Indexes (TTIs) followed the market direction and have reached the following positions above their respective long-term trend lines:
Domestic TTTI: +5.11% (last week +4.38%)
International TTI: +5.37% (last week +4.47%)
Next week, we’ll be looking at the Fed minutes, initial claims, consumer credit and wholesale inventories.
Right now it looks as though the trend has picked up the bullish tone again after the sell off earlier in March as a result of the Japanese disaster. I think the markets continue to gain support from the Feds intention to complete their $600 billion dollar bond purchase program (QE-2).
QE-2 scheduled to end this June—what will happen thereafter is anybody’s guess at this time. If it’s replaced by QE-3, we may see these good times for a while longer barring any sudden global events with the power to derail this rally.
Have a great week.
Ulli…
————————————————————-
READER Q & A FOR THE WEEK
All Reader Q & A’s are listed at our web site!
Check it out at:
http://www.successful-investment.com/q&a.php
A note from reader Tom:
Q: Ulli: You stated in your weekend report after the Japanese disaster earlier in March that none of your ETFs triggered a sell signal.
Several of ours did. Can you share those ETFs that you hold? Is there a listing somewhere on your successful-Investment page?
A: Tom: No, they are not listed, but here are a few that we hold:
EWM, VWO, VTI, IYZ, GLD, BND, DBC, VDE, just to name some.
———————————————————-
WOULD YOU LIKE TO HAVE YOUR INVESTMENTS PROFESSIONALLY MANAGED?
Do you have the time to follow our investment plans yourself? If you are a busy professional who would like to have his portfolio managed using our methodology, please contact me directly or get more details at:
http://www.successful-investment.com/money_management.htm
———————————————————
Back issues of the ETF/No Load Fund Tracker are available on the web at:
http://www.successful-investment.com/newsletter-archive.php
Contact Ulli