ETF/No Load Fund Tracker Newsletter For Friday, April 13, 2012
ETF/No Load Fund Tracker StatSheet
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THE LINK TO OUR CURRENT ETF/MUTUAL FUND STATSHEET IS:
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Market Commentary
Friday, April 13, 2012
US Stocks Fall On China Slowdown And Europe Worries; GAZ Rises, EWI Sinks
Following a two-day rally, US stocks retreated Friday with the broad market indices posting their biggest loss this year on European debt-crisis rumors and a lower-than-anticipated China GDP growth report.
Treasuries advanced, pushing 10-year yields below the 2 percent mark over speculations of a deteriorating Spanish economy following reports that the borrowings by the country’s banks zoomed last month.
For a tongue in cheek version of all that ails Europe, please take a look at the following video:
The Dow Jones Industrial Average (DJIA) slid 1.1 percent to end the week at 12,849.59; lower by 1.6 percent over last week’s close.
The S&P 500 Index (SPX) dropped 1.3 percent to 1370.26, off 2 percent from the prior week’s close, with financials and technology faring the worst and consumer staples and utilities performing the best.
The NASDAQ Composite (COMP) slipped 1.5 percent to finish at 3011.33, down 3 percent from the prior week.
US 10-year Treasuries advanced for the fourth week in a row, the longest stretch of gains since August. Treasuries pushed higher after China’s lower-than-forecast economic growth fuelled speculations of a global slowdown.
Benchmark yield on 10-year Treasuries dropped by 0.06 percentage points to settle at 1.99 percent. 30-year bond yield dropped six basis points to close at 3.15 percent for the week.
ETFs in the news:
The iPath S&P 500 VIX Short Term Futures ETN (VXX) rebounded by adding about 5.35 percent after tumbling 8 percent Thursday. Slowing Chinese growth and European debt worries triggered a sell-off today, driving the so-called fear-tracking VIX index higher.
The iPath Dow Jones UBS Natural Gas Subindex Total Return ETN (GAZ) soared Friday and added 7.47 percent despite energy and natural resource related stocks coming under pressure. GAZ’s rise can be attributed to its high premium, currently standing at over 100 percent.
As markets continue to slide, and investors increasingly seek refuge in safe haven assets, the iShares Barclays 20+ Year Treasury Index Fund (TLT) gained 1.62 percent as equities got pounded. TLT has managed to maintain its momentum after rallying through its 50-day moving average.
Among the day’s biggest losers, the iShares MSCI Italy Index Fund (EWI) shed 3.81 percent, as sovereign Italian yields continue to soar and European equities come under renewed pressure. There is bound to be more fallout next week as the realization sets it that added liquidity does not help insolvent institutions in the long run.
The PowerShares India Portfolio (PIN) slumped 4.15 percent as emerging markets lost favor with investors because of higher inherent risk perceptions.
The Market Vectors Solar Energy ETF (KWT) dropped 3.68 percent Friday, ending a long-streak of winning sessions. If you are a conservative investor, you better watch from a distance due to the fund’s high volatility.
Our Trend Tracking Indexes (TTIs) slipped from last Friday’s close, but both remain above the line and in bullish territory. Here are this week’s closing numbers:
Domestic TTI: +4.38% (last week +4.63%)
International TTI: +2.20% (last week +3.76%)
Have a great week.
Ulli…
Disclosure: Holdings in TLT
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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 Duffy:
Q: Ulli: I am a new reader. In basic terms, here is my first question. In your PDF on sell stops, you state below “when the 7% sell stop level has been broken, the “hold switches to sell”. Do you have this spreadsheet for download, or what is the formula to make the words “sell-hold” change to each position?
A: Duffy: No, you have to set up your own spreadsheet to do the tracking, just like I do in the model portfolios. You need to follow the high point your ETF has made since you bought it. That will form the basis for the sell stop calculations as mentioned before.
The formula to change from sell to hold is: =IF(N903<-7%,”Sell”,”Hold”). You need to have some spreadsheet knowledge to make that work.
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