Dow Breaks Seven Day Losing Streak; Buffet Deal Tops Headlines

Ulli Market Commentary Contact

Mon pic

[Chart courtesy of MarketWatch.com]

1. Moving the Markets

We have all been wondering when the Dow was going to move back into positive territory after a seven day losing streak. Well, today investors had their rally caps on apparently. The Dow jumped 242 points It was the biggest gain for the blue-chip index since May 8. The Dow recouped a large amount of its 378 point loss that it racked up over 7 days in its longest run of losses in four years.

As for the S&P, nine of the ten sectors closed higher. The energy sector took the lead with a 3.1% gain as oil prices rebounded. Benchmark U.S. crude jumped 2% to $44.74 a barrel after falling below $44 on Friday. The energy sector has slumped 16% in the last three months as oil has dropped back toward its low of the year. Utilities were the sole sector in the red.

In the M&A space, Mr. Buffet stole headlines today as news announced he will be closing on the largest deal in Berkshire Hathaway history. Berkshire (BRK.A, BRK.B) said today that it will pay $235 per share in cash for all of Portland based Precision Castparts’ (PCP) shares. That represents a 21% premium on the stock’s Friday closing price of $193.88. The global manufacturer makes castings, forged components, aerostructures and fasteners for the aerospace market. It also produces pipe and fittings for the power business and many other parts. The companies expect the deal to close in the first quarter of 2016.

All of our 10 ETFs in the Spotlight enjoyed today’s rebound and closed up. The leader was Mid-Cap Value (IWS) with +1.54%, while the laggard turned out to be Consumer Staples (XLP) with +0.38%.

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ETFs/Mutual Funds On The Cutline – Updated Through 08/07/2015

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 410 ETFs, of which currently 143 (last week 178) 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.

These ETFs are generated from my selected list of some 97 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. 24 ETFs (last week 33) have managed to remain in bullish territory after the recent market volatility.

The third report covers Mutual Funds on the Cutline. There are currently 314 (last week 430) above the line and 506 below it out of the 820 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.

One Man’s Opinion: Will Volatility Remain Elevated In The Near Future?

Ulli Market Review Contact

ManWhile many investors may have lost their annual gains in equities due to the recent slide, there are others who have built high cash positions, said Kristina Hooper of Alliance Global Investors.

Allianz expects heightened volatility with a downward bias in the coming weeks and investors with a long enough time horizon should hang around because markets are likely to see a turnaround by the end of the year, she noted.

Economist John Maynard Keynes had famously said “in the long-term we are all dead.” Asked if she regrets the advice that people should remain invested when the markets continue to fall, Christina answered in negative. Investors need not worry too much about short-term movements. Investors lose the most money when they are not able to stay invested because they often don’t get back in when the markets begin to recover, she explained.

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New ETFs On The Block: Deutsche X-Trackers Japan JPX-Nikkei 400 Equity ETF (JPN)

Ulli Country ETFs Contact

Worldwide ideasInvestment managers have been largely enthusiastic about Japan and Europe this year with the weakening of their respective currencies and the slide in oil prices. To take advantage of the success of the so called “Abenomics,” Deutsche Asset & Wealth Management, the fund manager known for its innovative international exchange-traded funds, launched a new Japan-focused fund to help investors take exposure in Asia’s second largest economy in a unique way.

The newly launched Deutsche X-trackers Japan JPX-Nikkei 400 Equity ETF (JPN) follows Japanese Prime Minister Shinzo Abe’s vision of smart beta: an index that follows “high appeal” Japanese companies.

JPN is the first US ETF to follow the JPX-Nikkei Index 400–a benchmark launched in January 2014 in an attempt to coax Japanese companies into becoming more efficient and transparent.

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ETF/No Load Fund Tracker Newsletter For August 7, 2015

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/2015/08/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-08062015/

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Market Commentary

MAJOR INDEXES SLIP DURING VOLATILE WEEK

Fri pic

[Chart courtesy of MarketWatch.com]

1. Moving the Markets

During this volatile week, the Dow managed to head for its longest slide in some 4 years with bio-techs, commodities and oil leading the trend towards bear market territory.

The S&P 500 gave back 1.23% this week and violated its widely followed 200-day moving average to the downside a couple of times but in the end, the index managed to close back above it by +0.51%.

The jobs report came in largely as expected and at a pace the Fed wants to see in order to justify its possible interest rate hike still anticipated for September. The only fly in the ointment was the unfortunate fact that there has only been minimal wage growth, which does not bode well for an economy that is depended on its citizens to spend with utter abandon.

Our 10 ETFs in the Spotlight were mixed again with 2 of them inching up on the day and 8 of them losing. Managing a scant gain were Select Dividends (DVY) and the Financials (IYF) with +0.03% each. On the downside, the worst performer was Consumer Staples with -0.56%.

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Weekly StatSheet For The ETF/No Load Fund Tracker Newsletter – Updated Through 08/06/2015

Ulli ETF StatSheet Contact

ETF/Mutual Fund Data updated through Thursday, August 6, 2015

TOC021915

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 10/22/2014

TTI

Our main directional indicator, the Domestic Trend Tracking Index (TTI), broke through its long-term trend line generating a “Sell” for this arena effective 10/14/2014, which was followed by a violent break back above the line on 10/22/14 generating a new “Buy.” It was a classic whipsaw signal, and you can read more on my blog as to the events as they were unfolding.

As of today, our TTI (green line in above chart) is positioned above its long term trend line (red) by +0.73% keeping us in the market with our established positions.

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