ETF/No Load Fund Tracker Newsletter For Friday, June 21, 2013

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ETF/No Load Fund Tracker StatSheet

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

https://theetfbully.com/2013/06/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-06202013/

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Market Commentary

Friday, June 21, 2013

BIG WEEKLY LOSSES DESPITE LATE GAINS

U.S. equities escaped from ending in the red on the heels of the worst two-day decline in over a year and closed mostly higher on Friday. Blue chip stocks were able to regain some of their strength to finish with nice gains amid the continued hangover from statements from Fed Chief Ben Bernanke.

The Dow Jones Industrial Average rose 41 points (0.3%) to 14,799, the Standard & Poor’s 500 Index gained 4 points (0.3%) to 1,592, while the Nasdaq Composite shed 7 points (0.2%) to 3,357 with pressures coming from the weakness in large technology shares. In heavy volume on a quadruple-witching day, 1.9 billion shares were traded on the NYSE, and 2.8 billion shares changed hands on the Nasdaq.

Technology stocks lagged from the opening bell when Oracle’s shares fell 9.3% in reaction to a disappointing earnings report. Other major tech components like Apple and Google also settled in the red. Rising Treasury yields have been in focus all week with the climb continuing today.

The benchmark 10-yr yield jumped almost ten basis points to 2.514%, its highest level since August 2011. Despite the ongoing rise in yields, income-oriented sectors held up well today as telecom services and utilities ended with respective gains of 0.6% and 1.3%. However, the two defensive sectors ended the week with respective losses of 3.7% and 2.8%. Also of note, the financial sector ended in line with the broader market, but major banks came under pressure after a Bloomberg story suggested U.S. regulators are thinking the idea of doubling minimum capital requirements for the country’s largest banks.

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Weekly StatSheet For The ETF/No Load Fund Tracker Newsletter – Updated Through 06/20/2013

Ulli ETF StatSheet Contact

ETF/Mutual Fund Data updated through Thursday, June 20, 2013

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

The domestic 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 Trend Tracking Index (TTI—green line in above chart) has bounced off its long term trend line (red) by +0.76% but is now close to signaling a “Sell.”

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 In “Taper” Tantrum Mode

Ulli Market Commentary Contact

Thur pic

[Chart courtesy of MarketWatch.com]

Equity Indexes plummeted and growth stocks got nailed adding to Wednesday’s solid losses, one day after Fed Chairman Ben Bernanke said the Federal Reserve could start scaling back or tapering its monthly bond purchases by year-end.

The selling began on Wednesday in the bond market as yields spiked sharply. From the bond trading pits the conflagration spread through Asia to Europe and finally back from where it came in the U.S. The Dow Jones Industrial Average plunged 354 points (2.3%) to 14,758, the Standard & Poor’s 500 Index tumbled 41 points (2.5%), the biggest drop since 2011, to 1,588, and the Nasdaq Composite tanked 79 points (2.3%) to 3,365. In heavy volume, CBOE Volatility Index ended Thursday at its highest level of the year.

All three major averages closed below their 50-day moving averages and took out their June 6 intraday lows. All 10 groups in the S&P 500 declined at least 2 percent. Concerns regarding possible tapering have caused a significant spike in interest rates. Since yesterday, the yield on the 10-yr note has jumped 25 basis points to 2.414%, with ten of those coming during today’s session. But there is more.

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Bears Feast On Fed’s News

Ulli Market Commentary Contact

Wed pic

[Chart courtesy of MarketWatch.com]

Concluding the Federal Open Market Committee’s (FOMC) monetary policy 2-day meeting, Federal Reserve Chairman Ben Bernanke held a press conference and appeared to have hinted that the days of easing may be nearing an end.

The statement from the FOMC was released ahead of the press conference wherein the Fed left the target fed funds rate unchanged near zero and maintained its mortgage-backed securities purchases at a pace of $40 billion per month and longer-term Treasury securities at a pace of $45 billion per month. Stocks finished solidly lower following the news.

The Dow Jones Industrial Average plunged 206 points (1.4%) to 15,112, the Standard & Poor’s 500 Index tumbled 23 points (1.4%), the most in two weeks, to 1,629, and the Nasdaq Composite declined 39 points (1.1%) to 3,443.

Today’s Statement indicated inflation has been running below the longer-run objective while long-term inflation expectations remain stable. During his remarks, Chairman Bernanke said if conditions continue to improve, the Fed could reduce the pace of purchases later this year with a potential end to purchases coming in the middle of 2014.

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7 ETF Model Portfolios You Can Use – Updated through 6/18/2013

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After the prior week’s volatility, some calmness returned to the markets as renewed upward momentum helped the S&P 500 to gain some 1.6% since the last ETF Model Portfolio report.

Bonds are still showing weakness as interest rates have been inching higher, but equities have largely ignored that fact. More in regards to market direction should be known later on today when the Fed concludes its two-day meeting on interest rates.

The outcome and language used in regards to possibly slowing down monetary policy may have a profound impact on the markets. As I posted before, bond ETFs and the metals have been the losers YTD while equities have been on a tear.

Here’s the latest ETF Model Portfolio update:

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Markets in Cheery Mood—Keep Up Gains

Ulli Market Commentary Contact

Tue pic

[Chart courtesy of MarketWatch.com]

The Major Equity Index ETFs continued yesterday’s momentum to close higher with all eyes feasted on tomorrow’s conclusion of the Federal Reserve’s two-day monetary policy meeting.

The Dow Jones Industrial Average closed 138 points (0.9%) higher at 15,318, the Standard & Poor’s 500 Index rose 13 points (0.8%) to 1,652, and the Nasdaq Composite added 30 points (0.9%) to 3,482.

All ten sectors ended with solid gains, but today’s rally was predicated on the strength of cyclical names. The industrial space rose 1.3% amid outperformance in transportation and defensive stocks. Dow component General Electric settled higher by 2.4% after forging a strategic partnership with Accenture. Discretionary stocks also made a significant contribution to today’s rally as the sector displayed broad strength.

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