ETF/No Load Fund Tracker Newsletter For Friday, April 20, 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 20, 2012
US BROAD MARKET EDGES HIGHER ON EARNINGS
US stocks mostly ended higher Friday with two indices reversing a two-week losing streak and recouping early week losses, as Wall Street welcomed another round of decent earnings from American companies and (temporarily) positive developments on Europe.
US Treasuries closed higher for the fifth week in a row, the longest stretch since last June as investors sought refuge in the world’s safest debt assets in an uncertain global environment.
The Dow Jones Industrial Average (DJIA) rose 0.5 percent, up 1.4 percent over the prior week, while the S&P 500 Index (SPX) climbed 0.1 percent with consumer staples and utilities faring the best and financials and technology dropping the most among the 10 industry group.
The NASDAQ Composite (COMP) slipped 0.2 percent, which is the index’s third straight week of losses.
Treasuries changed little from yesterday as the benchmark 10-year yield remained at 1.96 percent. The 10-year yields have remained within 7 basis points of the 2-percent level for two straight weeks now.
Today’s development shows the market’s deep suspicion over Eurozone developments, despite the IMF announcing $430 billion in fresh funding from G20 nations to protect a contagion.
ETFs in the news:
The Global X Uranium ETF (URA) jumped 1.91 percent, as equities closed the week with modest gains. URA, however, remains well below the levels seen before the April sell-off.
The iShares MSCI Spain Index Fund (EWP) rose 2.10 percent, showing some resilience as the week draws to an end. EWP has been on a downward journey since the middle of March as Spain’s financial woes made global headlines.
I suggest you handle all Europe related ETFs with care till after the impending elections in France and Greece to see if some stability returns in the region. Personally, I doubt it as the core issues that ail Europe have not been addressed.
The Guggenheim Shipping ETF (SEA) rose 1.48 percent to end the week on a positive note. However, you should remain cautious as a deteriorating global economy may put pressure on transportation related products.
Among the day’s top losers, the iPath S&P 500 VIX Short Term Futures ETN (VXX) lost 3.32 percent as risk sentiment improved. This ETF has floundered after capping a multi-session rally at the start of April but has struggled to break away despite market choppiness.
The iShares S&P North American Technology-Multimedia Networking Index Fund (IGN) dropped 2.22 percent as tech companies continue to disappoint. The fund’s eighth largest holding Riverbed Technology dropped to its lowest level since October on weak earnings number, dragging IGN lower.
Our Trend Tracking Indexes (TTIs) improved from last Friday’s close, and both remain above the line and in bullish territory. Here are this week’s closing numbers:
Domestic TTI: +4.60% (last week +4.38%)
International TTI: +3.23% (last week +2.20%)
Have a great week.
Ulli…
Disclosure: No holdings
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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 Dee:
Q: Ulli: I would like to get some guidance from you. I sold all my mutual funds some time ago and want to invest in ETFs and do it the way as shown in your model portfolios.
However, I see that the funds could be triggered to get sold any day based on the 7% sell stop set up when purchased. Once that happens, what would be the replacement funds?
I don’t seem to find that information.
A: Dee: Once you are stopped out of a position, you should first be in cash on the sidelines. You can then either replace that position with another fund that is trending up, or wait to reenter until the sold fund takes out its old high that you used as a basis to calculate the sell stop.
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