Markets Barely Back On Top

Ulli Market Commentary Contact

Tue pic

[Chart courtesy of MarketWatch.com]

1. Moving the Markets

The U.S. stock market slightly extended its relief rally as Wall Street and other global financial markets continue to be dominated by the pending outcome of Britain’s vote on Thursday to leave or stay in the European Union.

In a sign of just how high-profile and potentially risky the “Brexit” vote is to financial markets, billionaire George Soros shifted into high gear fear mongering mode today opining that a vote by Britain to leave the EU could allegedly cause grave damage to the living standards in the U.K. and trigger a massive drop in the value of the British pound.

In tech, Apple (AAPL) may finally be integrating into the India marketplace. Potential sales in India prompted Apple CEO Tim Cook to visit the country for the first time last month, where he met with India Prime Minister Narendra Modi, financial and tech leaders, and consumers alike. Apple has built a $59 billion business in China, its second-largest market, but it is in India, with annual sales of $1.5 billion, where Cook & Co. see the most potential.

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Relief Rally Fizzles

Ulli Market Commentary Contact

Mon pic

[Chart courtesy of MarketWatch.com]

1. Moving the Markets

Worldwide stock markets staged a huge rally this morning, which smelled like a dead cat bounce to me, as the much anticipated Brexit vote polls seem to be heading in the other direction with “remain” polls allegedly surging over the weekend casting doubt on the “leave” camp’s leadership.

With the European Union being most affected by the outcome, it was therefore no surprise that some of the EU markets gained 3.5% on the day. US stocks were up over 1% at one point but, after Europe closed, it was all downhill from there. Nevertheless, the major indexes managed to stay on the plus side as the table above shows.

The vote is schedule to take place this coming Thursday and will be one of the most anticipated events in recent market history. No matter what the outcome, US markets will be affected as well, although most likely not to the same degree as Europe. Stay tuned.

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One Man’s Opinion: Good News For Bulls: All Those Open Gaps Below Will Never Get Filled

Ulli Market Review Contact

ManBy Charles Hugh Smith

Market technicians have long observed that the holes in charts left when markets gap up or down at the open of trading almost inevitably get filled later on. When the market gaps down, it will eventually rise to fill that gap. When the market gaps up, it will eventually decline to fill that open gap.

Since there are open gaps galore lurking in the lower depths of the S&P 500’s chart, that would typically suggest stocks must–gasp!–fall to fill those open gaps. The prospect that stocks might not drift higher forever without interruption is deeply disturbing, and so the Powers That Be have issued a new edict: unfilled gaps below must never be allowed to fill.

This new rule simplifies trading, confidence and sentiment: Bulls can now relax, knowing that the market will never be allowed to decline. Sentiment can stay pegged at “extreme greed” forever, and there is no longer any need to hedge long positions because markets will only move higher.

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ETFs/Mutual Funds On The Cutline – Updated Through 06/17/2016

Ulli ETFs on the Cutline Contact

Below are the latest ETF Cutline reports, which show how far above or below their respective long-term trend lines (39 week SMA) my currently tracked ETFs/MFs are positioned.

The first report covers the ETF Master List from Thursday’s StatSheet and includes 381 ETFs, of which currently 284 (last week 324) are hovering in bullish territory.

The second report includes only High Volume ETFs. To clarify, High Volume (HV) ETFs are defined as those with an average daily volume of $10 million or higher. Volume figures can change in a hurry, so be sure to check first before investing.

These ETFs are generated from my selected list of 98 that I use in my advisor practice. It cuts out the “noise,” which simply means it eliminates those ETFs that I would never buy because of their volume limitations. 67 ETFs (last week 79) have managed to remain in bullish territory after the recent market volatility.

The third report covers Mutual Funds on the Cutline. There are currently 417 (last week 542) above the line and 363 below it out of the 780 that I follow.

Take a look:

  1. ETF Master Cutline Report
  2. ETF High Volume Cutline Report
  3. MF Cutline Report

In case you are not familiar with some of the terminology used in the reports, please read the Glossary of Terms.

If you missed the original post about the Cutline approach, you can read it here.

ETF/No Load Fund Tracker Newsletter For June 17, 2016

Ulli ETF Tracker Contact

ETF/No Load Fund Tracker StatSheet

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https://theetfbully.com/2016/06/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-06162016/

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Market Commentary

MARKETS REMAIN DISTRACTED ON BREXIT

Fri pic

[Chart courtesy of MarketWatch.com]

1. Moving the Markets

U.S. stocks posted losses today as Wall Street’s attention continues to focus on next week’s closely watched vote in Great Britain on whether to leave the European Union. Overall, this week was very volatile based on global events making it questionable as to whether we’ll see some stability as we head further into the summer months. This is the time to have your exit strategy in order, should the bears gain the upper hand during this notoriously weak season for the market.

In M&A news today, we heard that one of the nation’s best-known cosmetics manufacturers, Revlon (REV), is going to buy Elizabeth Arden (RDEN) in $419.3 million deal. The $14-a-share deal establishes the value of Elizabeth Arden at about $870 million, including debt, according to Revlon. Revlon said in a statement that it expects to reduce $140 million in redundant costs between the two companies, which will take three to five years to realize.

U.S. Crude, which had closed lower the first four days of the week, settled up Friday by nearly 4% to $47.98 per barrel, trimming its losses for the week from nearly 6% at Thursday’s close to -2.2% at week’s end.

In economic news, May housing starts in the U.S. fell but still topped estimates. Housing starts fell 0.3% to a seasonally adjusted 1.164 million units, which topped the 1.150 million units economists’ had forecast.

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Weekly StatSheet For The ETF/No Load Fund Tracker Newsletter – Updated Through 06/16/2016

Ulli ETF StatSheet Contact

ETF/Mutual Fund Data updated through Thursday, June 16, 2016

TOC060916

If you are not familiar with some of the terminology used, please see the Glossary of Terms.

 

1. DOMESTIC EQUITY MUTUAL FUNDS/ETFs: BUY — since 4/4/2016

TTI

Our main directional indicator, the Domestic Trend Tracking Index (TTI-green line in above chart) remains above its long term trend line (red) by +1.66% after having generated a new Domestic Buy signal effective 4/4/2016 as posted.

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