Equities End See-Saw Session On The Plus Side

Ulli Market Commentary Contact

Tue pic

[Chart courtesy of MarketWatch.com]

1. Moving the Markets

After yesterday’s downside debacle, it was only fitting to see some kind of a rebound attempt even though it was not nearly enough to make a dent in the losses the indexes sustained. It was nothing more than a “hope” rally with the latest news out of Greece being vague and non-inspiring to say the least.

The S&P 500 lost 2.1% for the month and ended its nine-quarter winning streak. While the index remains in the green year-to-date, the Dow on then other hand is in the red by 1.1%.

Greek news continues to dominate the headlines as Greece missed a $1.7 billion payment to the IMF, which was due today. On the menu is the scheduled referendum for July 5, with the population having the opportunity to make their voice heard in regards to Greece remaining in the eurozone. No matter what the outcome, it could be a wild upcoming week in the markets, so be prepared and know where your sell stops are and be ready to execute them should they be triggered.

With a predominately sideways pattern, 7 of our 10 ETFs in the Spotlight managed to inch up led by Consumer Discretionaries (XLY) sporting a 0.47% gain, while on the losing side the Global 100 (IOO) fared the worst by giving back another 0.33% on top of yesterday’s steep losses.

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Major Indexes Drop—Trend Tracking Indexes (TTIs) Remain On The Bullish Side

Ulli Market Commentary Contact

Mon pic

[Chart courtesy of MarketWatch.com]

1. Moving the Markets

Compared to the rest of the world, the domestic indexes held up fairly well as Greece’s negotiations unraveled as its local banks along with their stock market were closed. Nevertheless, the S&P 500 had its worst one-day showing in 2015.

It was a bad news day all the way around as Greece’s Prime Minister made a surprise announcement over the weekend by calling for a referendum on July 5 to let his people decide as to whether to accept the offered reform packages by its lenders or not. These developments hit the European markets especially hard with the German DAX losing 3.56% while all Asian markets ended in the red as well.

Not helping matters was shaky news out of China and words from the Puerto Rico governor that the U.S. commonwealth is facing a financial crisis due to its $70 billion muni debt problem, which it can’t pay back.

With today’s broad pullback, all of our 10 ETFs in the Spotlight succumbed to the bearish forces. Leading the downside was Healthcare (XLV), which surrendered 2.42% while Consumer Staples (XLP) held up best under the circumstances by giving back only 1.55%.

Please see section 3 below for today’s effect on our Trend Tracking Indexes (TTIs).

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ETFs/Mutual Funds On The Cutline – Updated Through 06/26/2015

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 240 (last week 267) 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. 35 ETFs (last week 47) have managed to remain in bullish territory after the recent market volatility.

The third report covers Mutual Funds on the Cutline. There are currently 539 (last week 578) above the line and 281 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 Equity Markets Provide Double-Digit Returns In The Second Half Of 2015?

Ulli Market Review Contact

ManInvestment Guru Carl Icahn’s recent observation about inflated asset prices and a probable sharp pull-back in equity indices caused some volatility for the stock markets this week.

The reality is when investors look at the second half, they have to measure their expectations a little bit, said Michael Fredericks, Managing Director at BlackRock Asset Allocation. Valuations of most asset classes now range between “somewhat expensive” and “expensive,” and investors need to temper their expectations.

That said; BlackRock believes instruments such as high-yield bonds are still a good source for consistent and steady returns, while the revision of earnings estimates has been severely negative for equities. The Federal Reserve said last week investors should be prepared for higher volatility/risk in equities and BlackRock believes markets are unlikely to give double-digit returns in the second-half of the year, he noted.

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New ETFs On The Block: Global-X Yieldco Index ETF (YLCO)

Ulli Bond ETFs Contact

Worldwide ideasAfter Investment guru Carl Icahn’s latest warning this week that all asset classes in the US are overvalued and equity markets are likely to witness a sharp pullback later this year once the rate-hike cycle gets underway, many analysts are suggesting relatively safer high-yield bonds in certain sectors that are largely immune to interest rates.

If spreads narrow toward the end of the year, fixed-income securities up in the high-yield hierarchy are likely to outperform the markets. Global X Funds, known for its successful array of unconventional income funds, recently broke new grounds with the launch of its so-called “yieldco” exchange-traded funds. The newly unveiled Global X YieldCo Index ETF (NASDAQ: YLCO) is an attempt to diversify the firm’s existing suite of income products through the alternative asset-class route.

To be sure, YLCO is the first fund of its kind that targets a unique subset of the broader income generating asset class named “yieldcos,” which are publicly traded renewable (solar, wind, biomass, tidal-wave etc) energy corporations and closely resemble Real-Estate Investment Trusts (REITs) and Master Limited Partnerships (MLPs).

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ETF/No Load Fund Tracker Newsletter For June 26, 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/2015/06/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-06252015/

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Market Commentary

S&P 500 SLIPS AS GREECE WEIGHS ON MARKET

Fri pic

[Chart courtesy of MarketWatch.com]

1. Moving the Markets

It was a nothing day as the major indexes meandered above and below their respective unchanged lines. In the end, the S&P 500 gave back a meager 0.43% for the week, which is minor if you compare it to the Chinese market, which dropped almost 7.4% today.

It was the same old story about Greece’s negotiations with its creditors; things are getting very slippery with a concrete agreement not being on the horizon. A line in the sand has been drawn by the Germans stating that a solution needs to be in place before the markets open on Monday.

Well, I won’t hold my breath but wish that Greece would finally do the unavoidable and default, since it’s inevitable anyway. Why prolong the agony? Nevertheless, there is another meeting of the euro finance ministers scheduled for Saturday to attempt to hammer out a last minute deal.

Domestically, consumer sentiment rose to its highest level in almost 6 months, which supported equities for a while but the ongoing Greek soap opera was too much of a negative.

9 of our 10 ETFs in the Spotlight managed to eke out again with the leader being the Dividend ETF (DVY), which added 0.59%. Closing slightly in the red was Healthcare (XLV) with a 0.14% loss.

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