Solid Gains For 3rd Straight Day

Ulli Market Commentary Contact

Mon pic

[Chart courtesy of MarketWatch.com]

1. Moving the Markets

The bulls had their way as the rally continued for the third straight day with the S&P 500 reclaiming the 2,100 level. The driver was a new agreement, where Greece ended up in total capitulation by giving up much sovereignity in turn for a third bailout program.

This type of deal came as a total surprise but before in can be finalized it must be approved by the national parliaments, which is expected to happen by the end of the week. Optimism persists that Greece will accept all conditions and thereby remain in the Eurozone. As a consequence, the markets are back in “risk on” mode.

Domestically, earnings will be on the menu for the next few weeks, and so far there have been no surprise announcements that companies may disappoint. If that holds, equities could be finding more support.

All of our 10 ETFs in the Spotlight participated in this rally and closed solidly higher. The leader for the day was Consumer Discretionaries (XLY), which gained 1.44%. On the laggard side, but still gainging nicely, was the Dividend ETF (DVY), which captured 0.69%.

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Delayed Market Report

Ulli Uncategorized Contact

Due to a variety of commitments this afternoon, today’s market report will be delayed. I hope to have it posted by 5:30 PM PST.

Ulli…

ETFs/Mutual Funds On The Cutline – Updated Through 07/10/2015

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 179 (last week 195) 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. 32 ETFs (last week 31) have managed to remain in bullish territory after the recent market volatility.

The third report covers Mutual Funds on the Cutline. There are currently 379 (last week 418) above the line and 441 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: Has China’s Experiment With Controlled Economic Slow-Down Been Successful?

Ulli Market Review Contact

Man

The recent slump in Chinese markets has set off alarm bells across the world as indexes in the world’s second largest economy had soared this year.

China’s stock markets either under-performed or matched expectations when its economy was booming and began to surge when the economy started to show signs of a slowdown since the second-half of last year, showing the apparent disconnect between the economy and the stock markets, said Olivier Blanchard, chief economist at the International Monetary Fund.

Though the Chinese stock markets lack depth, they are not quite a casino. It went up 150 percent in the last year, which far exceeds any realistic assessment of the increasing dividends that shareholders could hope for. The bubble has burst, but only in parts, and it’s unlikely to have much effect on the Chinese economy.

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New ETFs On The Block: SPDR Euro STOXX 50 Currency Hedged ETF (HFEZ)

Ulli Currency ETFs, Equity ETFs Contact

Worldwide ideasState Street Global Advisors, a unit of State Street and the third largest US issuer of exchange-traded funds, recently jumped onto the currency-hedged ETF bandwagon with the debut of the SPDR Euro STOXX 50 Currency Hedged ETF (HFEZ).

The new fund comes with low fees, possibly to compensate for the delay in a niche that is dominated by WisdomTree, iShares and DB X-trackers euro-hedged funds.

HFEZ provides euro-neutral exposure in an index of the 50 most liquid stocks from 12 countries across the Atlantic and is the first hedged product from State Street. It’s basically the currency-hedged version of the $4.9 billion SPDR Euro STOXX 50 ETF (FEZ).

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ETF/No Load Fund Tracker Newsletter For July 10, 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/2015/07/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-07092015/

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Market Commentary

A VOLATILE WEEK ENDS UNCHANGED

Fri pic

[Chart courtesy of MarketWatch.com]

1. Moving the Markets

One look at the above 5-day chart tells the entire story. We had huge swings in the market with the S&P 500 sporting a range of 40 points but ending just about unchanged.

Today’s broad rebound helped the indexes recover from a choppy week that saw a break below the widely followed 200-day moving average (S&P) with our Domestic Trend Tracking Index (TTI) getting ready to break into bear market territory. In the end, new optimism about another deal between Greece and its creditors provided the firepower to push the indexes back to their break-even point for the week.

Despite the stock market meltdown in China, where short sellers are now being threatened with jail terms, and the ongoing Greek saga, Fed chief Yellen reaffirmed that we are still on track in having to deal with an increase in interest rates at some point this year. Yeah, I believe it when I see it…

It was no surprise to see that all of our 10 ETFs in the Spotlight joined the bulls and closed higher. The leader was the Global ETF (IOO) with a gain of 2.37%; lagging the bunch were the Dividend ETF (DVY) and Mid-Cap Value (IWS), which both added a more modest 0.81%.

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