New ETFs On The Block: Cambria Global Value ETF (GVAL)

Ulli International ETFs Contact

95519646Mebane Faber’s Los Angeles, California-based Cambria ETF Trust and Cambria Investment Management LP launched its fourth exchange-traded fund recently, the Cambria Global Value ETF (GVAL). GVAL is a passively-managed strategic-beta fund and tracks the Cambria Global Value Index.

The NYSE-Arca listed fund is comprised of 100 stocks from the world’s 11 most undervalued developed and emerging market countries, as determined by the index provider. The 11 countries currently included in GVAL are Greece, Russia, Ireland, Hungary, Spain, Australia, Brazil, Czech Republic, Israel, Italy and Portugal.

The underlying index first screens its investment universe of 45 countries, including Australia, Austria, Belgium, Brazil, Canada, Chile, China, Columbia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Ireland, Israel, Italy, Japan, Luxemburg, Malaysia, Mexico, Morocco, Netherlands, New Zealand, Norway, Peru, Philippines, Poland, Portugal, Russia, Singapore, South Africa, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, UK and the US.

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03-14-2014

Ulli Newsletter Archives Contact

ETF/No Load Fund Tracker Newsletter For March 14, 2014

ETF/No Load Fund Tracker StatSheet

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

https://theetfbully.com/2014/03/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-03132014/

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Market Commentary

Friday, March 14, 2014

CHINA’S SLOW GROWTH, UKRAINE TENSIONS DRAG MARKETS DOWN FOR THE WEEK

Fri pic

[Chart courtesy of MarketWatch.com]

1. Moving The Markets

A sharp slowdown in China’s pace of growth affected stock and commodity prices globally, as the world’s second-largest economy continues to show signs of weakness. Rising tensions between Russia and the Ukraine also led investors to sell riskier assets this week. Japan reported that its economy grew more slowly than first estimated in the fourth quarter of 2013.

US data were mixed: Jobless benefit claims fell and retail sales rose, but producer prices fell slightly, indicating weakness, and consumer sentiment edged down. Thus, overall this week global stocks broadly lost ground, and the price of most commodities, including oil, fell. Gold prices rose and the yield on 10-year US Treasury notes fell substantially as demand grew for safe-haven assets. Reflecting the market’s nervous mood, the CBOE Volatility Index rose to 16.22, its highest level in weeks.

Data released this week signals a resilient, but far from robust, US economy. On the plus side, retail sales rose 0.3%, slightly more than the anticipated 0.2%. After the unusually cold and snowy winter, sales are expected to pick up further in the spring, as warmer weather combines with healthier household finances and a possible increase in consumer demand.

Volkswagen (VW), Europe’s largest automaker, reported a 58% drop in its net earnings for 2013 and issued a cautious outlook for 2014 as a result of sluggish global car demand and emerging market currency risks. Volkswagen’s sales rose 2.2% overall, driven by healthy sales of Porsche sports cars and strong growth in China.

Fannie Mae and Freddie Mac are back in the spotlight. After having fully repaid their $187.5 billion bailout to the US government, Fannie and Freddie could send almost $180 billion in profits to taxpayers over the next decade if the terms of their bailout remain unchanged, according to the US budget office. However, a bipartisan congressional proposal to wind down the mortgage giants is being considered. Shares of both companies fell sharply on the news.

Looking ahead to next week, we will receive the U.S. Federal Reserve’s latest policy decision on Mar. 19 and Oracle will report its quarterly earnings on Tuesday.

Our 10 ETFs in the Spotlight slipped for the week with 6 of them still showing gains YTD.

2. ETFs in the Spotlight

In case you missed the announcement and description of this section, you can read it here again.

It features 10 broadly diversified ETFs from my HighVolume list as posted every Monday. Furthermore, they are screened for the lowest MaxDD% number meaning they have been showing better resistance to temporary sell offs than all others over the past year.

In other words, none of them ever triggered their 7.5% sell stop level during this time period, which included a variety of severe market pullbacks but no move into outright bear market territory.

Here are the 10 candidates:

MaxDD

All of them are in “buy” mode meaning their prices are above their respective long term trend lines by the percentage indicated (%M/A).

Year to date, here’s how the above candidates have fared so far:

YTD

To be clear, the first table above shows the position of the various ETFs in relation to their respective long term trend lines (%M/A), while the second one tracks their trailing sell stops in the “Off High” column.

3. Domestic Trend Tracking Indexes (TTIs)

Our Trend Tracking Indexes (TTIs) headed south as well with the International one taking a big hit over the past five trading days:

Domestic TTI: +3.34% (last Friday +4.55%)

International TTI: +3.10% (last Friday +6.35%)

Have a great week.

Ulli…

Disclosure: I am obliged to inform you that I, as well as advisory clients of mine, own some of these listed ETFs. Furthermore, they do not represent a specific investment recommendation for you, they merely show which ETFs from the universe I track are falling within the guidelines specified.

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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 John:

Q: Ulli: I have been in all cash for a while but looking for some equity exposure. Any suggestions?

A: John: While I can’t give specific recommendations, I can suggest one way of carefully easing into the market. Given current high market levels and if you have a conservative bias, I recommend my incremental buying strategy, which is explained in detail in my video on my blog. It’s not the one at the top right. Scroll down a bit and look for the one titled “How to know your investment risk.”

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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 Newsletter For March 14, 2014

Ulli ETF Tracker Contact

ETF/No Load Fund Tracker StatSheet

————————————————————-

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

https://theetfbully.com/2014/03/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-03132014/

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Market Commentary

Friday, March 14, 2014

CHINA’S SLOW GROWTH, UKRAINE TENSIONS DRAG MARKETS DOWN FOR THE WEEK

Fri pic

[Chart courtesy of MarketWatch.com]

1. Moving The Markets

A sharp slowdown in China’s pace of growth affected stock and commodity prices globally, as the world’s second-largest economy continues to show signs of weakness. Rising tensions between Russia and the Ukraine also led investors to sell riskier assets this week. Japan reported that its economy grew more slowly than first estimated in the fourth quarter of 2013.

US data were mixed: Jobless benefit claims fell and retail sales rose, but producer prices fell slightly, indicating weakness, and consumer sentiment edged down. Thus, overall this week global stocks broadly lost ground, and the price of most commodities, including oil, fell. Gold prices rose and the yield on 10-year US Treasury notes fell substantially as demand grew for safe-haven assets. Reflecting the market’s nervous mood, the CBOE Volatility Index rose to 16.22, its highest level in weeks.

Data released this week signals a resilient, but far from robust, US economy. On the plus side, retail sales rose 0.3%, slightly more than the anticipated 0.2%. After the unusually cold and snowy winter, sales are expected to pick up further in the spring, as warmer weather combines with healthier household finances and a possible increase in consumer demand.

Volkswagen (VW), Europe’s largest automaker, reported a 58% drop in its net earnings for 2013 and issued a cautious outlook for 2014 as a result of sluggish global car demand and emerging market currency risks. Volkswagen’s sales rose 2.2% overall, driven by healthy sales of Porsche sports cars and strong growth in China.

Fannie Mae and Freddie Mac are back in the spotlight. After having fully repaid their $187.5 billion bailout to the US government, Fannie and Freddie could send almost $180 billion in profits to taxpayers over the next decade if the terms of their bailout remain unchanged, according to the US budget office. However, a bipartisan congressional proposal to wind down the mortgage giants is being considered. Shares of both companies fell sharply on the news.

Looking ahead to next week, we will receive the U.S. Federal Reserve’s latest policy decision on Mar. 19 and Oracle will report its quarterly earnings on Tuesday.

Our 10 ETFs in the Spotlight slipped for the week with 6 of them still showing gains YTD.

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Weekly StatSheet For The ETF/No Load Fund Tracker Newsletter – Updated Through 03/13/2014

Ulli ETF StatSheet Contact

ETF/Mutual Fund Data updated through Thursday, March 13, 2014

Table of Content082312

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 10/25/2011

TTI

Our main directional indicator, the Domestic Trend Tracking Index (TTI), broke through its long-term trend line generating a Sell for this area effective 8/9/2011. Over the recent past, we’ve seen the TTI hovering slightly below and above this dividing line between bullish and bearish territory. The clear break to the upside occurred on 10/24/11 and, effective 10/25/11, a new Buy signal for domestic equities went into effect.

As of today, our TTI (green line in above chart) has bounced off its long term trend line (red) by +3.62%.

To avoid a potential whip-saw, a Sell signal to move out of all domestic equity positions will be generated once we have clearly pierced the line to the downside. Be sure to tune in for the latest updates.

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Markets Remain Sensitive Amid International Concerns

Ulli Market Commentary Contact

Thur pic

[Chart courtesy of MarketWatch.com]

1. Moving The Markets

It was not a good day for U.S. stocks as they fell broadly today, with the Dow and S&P 500 suffering their worst day of trading since early February. The blame is being put on rising concerns over Ukraine and Russia, as well as new indications of a slowdown in China. China’s economy slowed markedly in the first two months of the year, as growth in investment, retail sales and factory output all fell to multi-year lows. The stream of lackluster Chinese data continues. Figures overnight showed Chinese industrial output in January-February rose 8.6% from a year earlier but was down from 9.7% in December. Retail sales for the same period were also higher, but failed to meet expectations.

The Ukraine and Russia standoff is not helping markets one bit. Lawmakers in Ukraine have voted unanimously to create a National Guard of 60,000 or more volunteers amid their worries that Russian troops have amassed themselves near the border between the two countries ahead of a Sunday referendum in Crimea on whether citizens want to join Russia. Plus, there was a rumor that Russia started shooting today. Remember that with markets at all-time highs there is heightened sensitivity to any piece of bad news.

While the international landscape seems a bit shaky, things are on the up and up here at home. U.S. retail sales rebounded in February and new filings for jobless benefits hit a fresh three-month low last week, suggesting the economy was regaining strength after an abrupt slowdown caused by severe weather.

Retail sales increased 0.3% last month, with receipts rising in most categories, the Commerce Department said. The gain followed a 0.6% drop in January and ended two straight months of declines. In a separate report today, the Labor Department said initial claims for state unemployment benefits dropped 9,000 to a seasonally adjusted 315,000 last week. That was the lowest reading since late November.

Our 10 ETFs in the Spotlight slipped with the indexes but 7 of them are currently showing gains YTD.

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Investors Timid On Mediocre China Data

Ulli Market Commentary Contact

Wed pic

[Chart courtesy of MarketWatch.com]

1. Moving The Markets

For much of trading today, the U.S. stock market appeared to be headed for its third decline in three days. By late afternoon though, the indexes began to slowly recover its losses as investors bought up oil refiners, mining companies and tech stocks. Afternoon activity was just enough to nudge the S&P 500 and Nasdaq into positive territory to close out the day. Six of the 10 industry sectors in the S&P 500 index notched small declines, with industrials posting the biggest drop. Utilities paced other gainers, as investors moved money into the relatively low-risk sector. The three major indexes are still down for the week, after a record setting performance the week before.

The news that we received over the weekend that China’s exports dropped substantially in February has raised investor’s eyebrows to say the least. Commodities such as copper and iron ore have dropped substantially over the past couple of days, with copper near its lowest level since 2010. Occasional weak data news coming out of China is nothing new; however, the thing to remember is that markets are at an all-time high and are thus much more sensitive to any kind of negative news.

Bad news from China did not stop investors from making heavy investments in oil refiners today. Leading the S&P 500 was Tesoro Corp. (TSO), posting gains of 4.07%. Valero Energy Corp (VLO) also posted notable gains of 3%.

Investors await the next round of market moving news that will come out on Thursday, when new data on retail sales and weekly unemployment benefit applications are released. On Friday, a survey of consumer confidence should give traders a better sense of how Americans feel about the economy.

Our 10 ETFs in the Spotlight went pretty much sideways with none of them making new highs today but 7 of them currently showing gains YTD.

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