I Would Like To Buy Three ‘As’ Please. Sorry, Better Luck Next Time

Ulli Market Review Contact

Mon pic

[Chart courtesy of MarketWatch.com]

1. Moving The Markets

The markets stayed in the green zone after a minimal amount of economic news to trade on and no major M&A announcements. All major indexes showed small gains for the day.

There was a decent amount of news in the tech world today. Internet domain registration company GoDaddy finally pulled the trigger on its move towards an IPO. The company has filed its prospectus to sell $100 million-worth of shares to the public, ending months of speculation. The initial public offering makes GoDaddy the last Internet darling to take advantage of the open window for new stock offerings.

Well, those hoping that the U.S. would regain its premier status as a top credit rated borrower saw their hopes wash away today. Credit ratings agency Standard & Poor’s reaffirmed its AA+ rating on U.S. debt. Some optimists have been hoping that the U.S. could regain its AAA rating, after losing it on Aug. 5, 2011 following the damage of the financial crisis. Most analysts are citing elected officials’ inability to react swiftly and effectively to public finance pressures.

Our 10 ETFs in the Spotlight inched higher; 5 of them made new highs today while all 10 of them are now on the plus side YTD.

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ETFs/Mutual Funds On The Cutline – Updated Through 06/06/2014

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 398 ETFs, of which currently 384 (last week 362) 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. 87 ETFs (last week 82) have managed to remain in bullish territory after the recent market volatility.

The third report covers Mutual Funds on the Cutline. There are currently 757 (last week 625) above the line and 93 below it out of the 859 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 Growth In The Second Half Be Stronger?

Ulli Market Review Contact

92835431The latest jobs report is positive as it shows the economy continues to heal though there is a lot of work that needs to be done, said Alan Krueger, a professor at the Princeton University and former chairman of the White House Council of Economic Advisers.

There are longstanding problems that even predate the recession that need to be addressed. But the latest data shows the expansion is continuing and may be even gathering a little bit of steam. It’s been a steady recovery, and it looks like it’s going to keep going, he added.

Asked if the recovery will gather steam or simply continue to notch up incremental gains, Alan said the economy needs to build on the progress that it has achieved so far and incremental gains is probably the best thing people can hope for given the nature of the crisis. The economy continues to experience some weaknesses given how much wealth was destroyed and how much overbuilding took place in construction.

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New ETFs On The Block: Powershares Multi-Strategy Alternative Portfolio (LALT)

Ulli Currency ETFs, Equity ETFs Contact

Money Market analysis, calculator, cashInvesco PowerShares, the Illinois-based fourth-largest US provider of exchange-traded funds, has launched a multi-strategy, alternative portfolio in partnership with Morgan Stanley that focuses on enhanced risk-adjusted returns while lowering volatility.

The PowerShares Multi-Strategy Alternative Portfolio (LALT) is likely to find favor with traditional stock/bond investors who wish to better manage volatility as interest rates begin to normalize in the US. The liquid alternatives and the multi-alternative segments are fairly crowded with 125 funds currently on offer (per Morningstar) although there are only four ETFs in the category. Invesco Advisors will sub-advise LALT.

The new fund tracks the Morgan Stanley Multi-Strategy Alternative Index, a proprietary benchmark that combines multiple rules-based, quantitative strategies and has a low correlation to traditional asset classes. However, since LALT is an actively managed fund, it doesn’t aim to fully replicate the index; instead it looks to generate returns in excess of the returns from the index by investing in a combination of equities, financial futures, currency forwards and other securities.

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06-06-2014

Ulli Newsletter Archives Contact

ETF/No Load Fund Tracker Newsletter For June 6, 2014

ETF/No Load Fund Tracker StatSheet

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

https://theetfbully.com/2014/06/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-06052014/

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Market Commentary

Friday, June 6, 2014

STOCKS RIDE HIGH INTO FIRST WEEK OF SUMMER

Fri pic

[Chart courtesy of MarketWatch.com]

1. Moving The Markets

Stocks ended the week on a high note, a record high note for that matter, with the overall markets gaining more than 1%. Equities have continued to trend upwards over the past couple of weeks, and this week was especially solid as markets were given a lift by decent global economic readings that suggest a continued improvement in the economy, monetary stimulus from the European Central Bank (ECB) to counter low inflation, and a positive U.S. jobs report.

Friday’s closely watched monthly payrolls report helped close out the week on a strong note. The Labor Department announced that employers had added 217,000 jobs in May, a healthy gain. Total U.S. payrolls have now surpassed the previous high reached in early 2008, prior to the financial crisis.

In the tech world, a big piece of M&A news came in today. Sprint (S) and T-Mobile (TMUS) have agreed to a merger that entails Sprint paying approximately $40/share, which implies a valuation of $32bil for T-mobile. With Sprint and T-mobile being the lower cost competitors in the market, it should be interesting to see how the merger will impact consumers. If the deal goes through and is approved by regulators, the Sprint-T-Mobile entity would have a share of about 30% of the U.S. wireless market.

Our 10 ETFs in the Spotlight joined the bulls and headed north; 8 of them made new highs today while all of them are now on the plus side YTD with the laggard, XLY, finally showing a green number.

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. The “Action” column will signal a “Sell” once the -7.5% point is taken out in the “Off High” column.

3. Domestic Trend Tracking Indexes (TTIs)

Our Trend Tracking Indexes (TTIs) both headed higher and deeper into bullish territory:

Domestic TTI: +3.55% (last Friday +3.15%)

International TTI: +4.85% (last Friday +4.21%)

Have a great weekend.

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 Jason:

Q: Ulli: Could you please clarify the difference between your M-Index and the momentum numbers as posted in your Monday Cutline reports? I find this information very valuable.

A: Jason: The M-Index is the ranking based on all momentum numbers and shows how funds/ETFs rank comparatively. The Cutline position numbers are simply showing the positions a fund/ETF has relative to its cutline or trend line.

For example, the first one above the yellow cutline has the position +1, the next one above it +2 and so on. The same applies below the cutline. As time goes on, you can quickly determine which funds are bouncing around the cutline and which ones are developing upside momentum by steadily climbing higher and developing positive momentum numbers.

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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 June 6, 2014

Ulli ETF Tracker Contact

ETF/No Load Fund Tracker StatSheet

————————————————————-

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

https://theetfbully.com/2014/06/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-06052014/

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Market Commentary

Friday, June 6, 2014

STOCKS RIDE HIGH INTO FIRST WEEK OF SUMMER

Fri pic

[Chart courtesy of MarketWatch.com]

1. Moving The Markets

Stocks ended the week on a high note, a record high note for that matter, with the overall markets gaining more than 1%. Equities have continued to trend upwards over the past couple of weeks, and this week was especially solid as markets were given a lift by decent global economic readings that suggest a continued improvement in the economy, monetary stimulus from the European Central Bank (ECB) to counter low inflation, and a positive U.S. jobs report.

Friday’s closely watched monthly payrolls report helped close out the week on a strong note. The Labor Department announced that employers had added 217,000 jobs in May, a healthy gain. Total U.S. payrolls have now surpassed the previous high reached in early 2008, prior to the financial crisis.

In the tech world, a big piece of M&A news came in today. Sprint (S) and T-Mobile (TMUS) have agreed to a merger that entails Sprint paying approximately $40/share, which implies a valuation of $32bil for T-mobile. With Sprint and T-mobile being the lower cost competitors in the market, it should be interesting to see how the merger will impact consumers. If the deal goes through and is approved by regulators, the Sprint-T-Mobile entity would have a share of about 30% of the U.S. wireless market.

Our 10 ETFs in the Spotlight joined the bulls and headed north; 8 of them made new highs today while all of them are now on the plus side YTD with the laggard, XLY, finally showing a green number.

Read More