ETFs On The Cutline – Updated through 7/8/2011 – Upcoming Improvements

Ulli ETFs on the Cutline Contact

Last week’s rally attempt in anticipation of a super jobs report ran into resistance as the horrific unemployment numbers had Wall Street traders trying to put some lipstick on that pig. The ensuing sell off was modest at best, and the major indexes ended up gaining slightly for the week.

Trend direction was predominantly sideways, which means not much happened around the cutline. High Yield Bonds (JNK) recovered from a -6 position and rallied to +6. The Diversified Emerging Markets (EEB) rose from the basement, below the -20 position, and ended up at +4.

As I pointed out last week, if you are following some of the better performing ETFs, which have moved above the +20 position, you need to track them now via the Master ETF list. You can find the latest version in last Friday’s StatSheet (section 3).

I realize that this is a bit of a hassle, and I am working on having the Cutline reports improved by not only showing the +20 positions above the line, but to expand that to +100. That will enable you to view and track those ETFs that have previously crossed the line to the upside and are now showing improvements in the various momentum columns.

This should make the Cutline reports a far better tool for you to track your selected ETFs quickly and effectively. My programmer is working on these changes, and I hope to have them completed within 2 weeks.

Take a look at this week’s report:

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Last Week In Review: ETF News And Blog Posts

Ulli ETF News Contact

In case you missed it, here’s a summary of the ETF topics that I posted to my blog during the week ending on 7/8/2011.

Despite Friday’s horrific jobs report, the major market ETFs managed to eke out a gain for the week. The focus will now be on the upcoming earnings season, where surprises to the upside, because of reduced expectations, can give the market another lift—at least that’s the theory.

My published Cutline tables and Model ETF Portfolios can give you an assist by indentifying weakness and strength in various market segments so that you can make better investment decisions by avoiding exposure in those areas that are trending down.

This week, we covered the following:

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Pimco’s New Total Return ETF (TRXT) In The Limelight

Ulli ETF News Contact

The much anticipated arrival of Pimco’s New Total Return ETF (TRXT) went to the next level, as the annual charges were finally disclosed, as reported by Bloomberg:

Pacific Investment Management Co.’s first active exchange-traded fund to be run by Bill Gross will charge annual fees of 0.55 percent, as the firm seeks to expand in the fastest-growing industry segment.

Pimco disclosed the cost for the Pimco Total Return Exchange-Traded Fund in a filing today with the U.S. Securities and Exchange Commission. Newport Beach, California-based Pimco said in April it planned an ETF that will follow a strategy similar to Gross’s top-ranked $242.8 billion Total Return bond mutual fund. The institutional share class of the mutual fund, available in some retirement accounts, carries an expense ratio of 0.46 percent, while the fund’s most widely used retail share classes charge fees ranging from 0.75 percent to 0.85 percent.

Gross, 67, is the most prominent fund manager to offer his investment strategy in an ETF format. Total Return, the world’s largest mutual fund, has climbed an average of 9 percent annually in the past five years to beat 99 percent of peers, according to data compiled by Bloomberg. Pimco, which is diversifying beyond bond mutual funds under Chief Executive Officer Mohamed El-Erian, pushed into ETFs two years ago.

“This has been a very deliberate and thoughtful process,” Don Suskind, head of Pimco’s ETF product-management group, said in an interview. “Through the ETF vehicle, we thought there could be a broader set of investors that can access the Total Return strategy.”

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ETF Leaders And Laggards – For The Week Ending 7/8/2011

Ulli ETF Leaders & Laggards Contact

Here is a quick review of the past week’s winners and losers from my High Volume ETF Master list:

Euphoria towards a positive jobs report turned into a display of shock-and-awe, as the unemployment and job creation numbers were downright atrocious. Still, the major indexes gained slightly over the past four trading days.

Last week, I was surprised to see that Spain (EWP) was the leader with a weekly gain of +10.12%. Well, it’s feast or famine, as EWP is now leading this week’s laggards with a loss of -7.00%.

Uncertainty still plays a big role in my opinion, which explains why the top leaders came from gold related ETFs. The laggards, however, were Brazil and Europe; maybe that’s the reason for the discrepancy between our domestic TTI gaining and the international TTI losing for the past week.

Disclosure: Holdings in GLD

07-08-2011

Ulli Newsletter Archives Contact

ETF/No Load Fund Tracker StatSheet

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THE LINK TO OUR CURRENT ETF/MUTUAL FUND STATSHEET IS:

https://theetfbully.com/2011/07/weekly-statsheet-for-the-etfno-load-fund-tracker-updated-through-772011/

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Market Commentary

Friday, July 8, 2011

Lousy Jobs Data Stops Bulls In Their Tracks – Major Market ETFs Pull Back

Much anticipation had been built on the release of today’s jobs report. Even preliminary figures from ADP on Thursday raised hopes that there would be reason to cheer.

Then came reality, and the only cheering came from the bearish crowd, as the unemployment report turned out not to be only below expectations, it was downright horrible—a complete miss.

Unemployment rose to 9.2%, there was very little job growth (18,000 added), wages were not rising and hours worked remained flat. For sure, this will force many forecasters to reduce their projections for the second half. In other words, two years after the alleged recovery began, labor conditions have not improved at all.

The only surprise to me was that this day did not turn into a disaster. Yes, the markets pulled back but not as much as this report would have warranted. Why? Wall Street traders are an optimistic bunch, so they simply looked past this report and focused on the upcoming earnings season. Maybe there’s something to cheer about after all. Go figure…

Our Trend Tracking Indexes (TTIs) provided a mixed picture, compared to last week, as the domestic one gained strength while the international one lost momentum. Here are today’s prices:

Domestic TTI: +4.54% (last week +3.67%)
International TTI: +1.26% (last week +1.72%)

This weakening on the international side has kept me from issuing a new ‘Buy’ for that arena despite the crossing of the trend line to the upside. To avoid an immediate whipsaw signal, I’d rather wait for more confirmation that upward momentum has indeed been restored before pulling the trigger.

Next week, we’ll be facing a host of economic reports along with the start of earnings season. Let’s hope there are some positives, otherwise, the only ones doing the cheering will be the bears.

Have a great week.

Ulli…

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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 Stefanie:

Q: Ulli: I am just starting to look at your portfolios and buy/sell parameters, but I would appreciate a definition of “sell” criteria like the “buy” explanation you gave recently.

A: Stefanie: The “Sell” is automatically determined by your trailing sell stops getting triggered. As such, they serve 2 purposes:

1. To limit your downside risk, if the markets head south right away, or

2. If a rally continues, they will lock in your profits when the inevitable turnaround occurs.

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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:

https://theetfbully.com/personal-investment-management/

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Back issues of the ETF/No Load Fund Tracker are available on the web at:

https://theetfbully.com/newsletter-archives/

ETF/No Load Fund Tracker For Friday, July 8, 2011

Ulli ETF Tracker Contact

ETF/No Load Fund Tracker StatSheet

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THE LINK TO OUR CURRENT ETF/MUTUAL FUND STATSHEET IS:

https://theetfbully.com/2011/07/weekly-statsheet-for-the-etfno-load-fund-tracker-updated-through-772011/

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Market Commentary

Friday, July 8, 2011

Lousy Jobs Data Stops Bulls In Their Tracks – Major Market ETFs Pull Back

Much anticipation had been built on the release of today’s jobs report. Even preliminary figures from ADP on Thursday raised hopes that there would be reason to cheer.

Then came reality, and the only cheering came from the bearish crowd, as the unemployment report turned out not to be only below expectations, it was downright horrible—a complete miss.

Unemployment rose to 9.2%, there was very little job growth (18,000 added), wages were not rising and hours worked remained flat. For sure, this will force many forecasters to reduce their projections for the second half. In other words, two years after the alleged recovery began, labor conditions have not improved at all.

Read More