China Helps Nasdaq To End At Highest Since 2000

Ulli Market Commentary Contact

Mon pic

[Chart courtesy of MarketWatch.com]

Global economic optimism, courtesy of a stronger-than-expected read on Chinese August exports and a sharp upward revision to Japan’s 2Q GDP growth, helped to propel stocks to start the week. U.S. markets closed sharply higher on Monday, with the Nasdaq ending at its highest level since September 2000.

Sentiment was also lifted by merger activity and easing concerns about a potential Western-led strike on Syria. Meanwhile, consumer credit was the only item on today’s economic calendar, showing that consumer credit expanded at a smaller-than-expected pace.

U.S. equities climbed from the open thanks to China reported overnight a larger-than-expected trade surplus as imports grew 7.0% (11.3% expected) and exports increased 7.2% (6.0% forecast). Elsewhere, Japan saw its second quarter GDP revised up to 0.9% quarter-over-quarter from 0.6% and Tokyo received the nod to host the 2020 Olympics.

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ETFs/Mutual Funds On The Cutline – Updated Through 9/6/2013

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 297 (last week 272) 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 93 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. 59 ETFs (last week 50) have managed to remain in bullish territory after the recent market volatility.

The third report covers Mutual Funds on the Cutline. There are currently 769 (last week 752) above the line and 90 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: Should The Government Wind Down Freddie Mac And Fannie Mae?

Ulli Market Review Contact

92835431Fannie May and Freddie Mac are still supported by the tax payer, but progress is being made as Congress is debating on how to get the government out of the mortgage business. However, Fannie and Freddie are now making money and putting in billions of dollars in the coffers that the government used to bail them out in the first place.

If Fannie and Freddie hadn’t been there in the last five years or so, the prices of housing stocks would have been much lower today, thinks James Lockhart, vice chairman of WL Ross & Co. At some point in time though the government needs to get out of the housing market, and it’s not going to be easy since both Fannie and Freddie’s share is well over half of the 10-trillion dollar industry, Jim noted.

Asked how long Fannie and Freddie would require government support, Jim said there’s some legislation going on and personally he would like to send a legislation proposing winding down of the institutions in the next five years or so and replacing them with a much smaller and purely government insurance program for some mortgage-backed securities. That government-backed program can actually act as a countercyclical force, he observed.

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New ETFs On The Block: Egshares Emerging Markets Dividend Growth ETF (EMHD)

Ulli Dividend ETFs, Emerging Markets ETFs Contact

139868600Emerging Global Advisors, the emerging market-focused sponsor of EGShares exchange-traded products, launched an income-centric product last month that focuses purely on yield.

The new fund, EGShares Emerging Markets Dividend Growth ETF (EMHD), tracks the FTSE Equal Weighted Emerging All Cap ex-Taiwan Diversified Dividend Yield 50 Index, a benchmark co-developed by EGA and FTSE that provides exposure in developing world companies.

The index screens the FTSE Emerging All Cap ex-Taiwan Universe and equal weights 50 stocks that have consistently generated high-income for their shareholders after screening for liquidity. While equal weighting ensures each index component is allocated 2 percent on rebalancing dates annually, the index excludes the least-capitalized dividend-paying companies.

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09-06-2013

Ulli Newsletter Archives Contact

ETF/No Load Fund Tracker Newsletter For Friday, September 6, 2013

ETF/No Load Fund Tracker StatSheet

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

https://theetfbully.com/2013/09/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-09052013/

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Market Commentary

Friday, September 6, 2013

CALM BEFORE THE STORM?

U.S. equity markets closed the trading day near the flat line, bouncing back from their early session lows, which may have been due to an increase in geopolitical strain as President Obama was met with resistance from the global community regarding his plan to carry out a limited military strike on Syria.

Political concerns overshadowed slower-than-forecast jobs growth that eased concern about reductions in Federal Reserve stimulus. For the week, the S&P 500 finished up 1.4 percent and the Nasdaq was up 2 percent. The Dow rose 0.8 percent to snap a streak of four weekly declines.

Prior to the opening bell, it was reported that nonfarm payrolls increased by 169,000 in August, below the consensus of 175,000. The unemployment rate, however, slipped to 7.3% from 7.4%, the lowest since 2008, but that was the result of a drop in the labor force participation rate to 63.2%. The one bright spot could be found in aggregate income, which increased 0.6%. This plodding along of employment growth, no matter how poorly and despite constant revisions to the downside, may be the key reason for the Fed to announce later this month that it will start to taper its asset purchases.

Immediately following the report, crude oil, equity futures, treasuries, and gold futures jumped to their highs. The opening hour saw the S&P lose its 50-day average after Russian President Putin said his country will assist Syria in the event of an external attack.

With the continued uncertainty surrounding the situation in the Middle East, crude oil climbed throughout the day. The energy component ended higher by 2.0% at $110.54 per barrel, registering its highest close since May 2011. Elsewhere, gold futures climbed 1.0%, contributed to the strength of miners as the Market Vectors Gold Miners ETF advanced 1.7%. Consumer staples (+0.1%) and utilities (+0.6%) outperformed as the retreat in yields provided the two groups with a measure of support.

The equity markets found strength in the first week of what could be a volatile September. Stocks were buoyed by signs of U.S. economic prosperity. Additionally, stocks appeared to get a win-win on the Fed asset tapering debate. Data suggested the economy may be healthy enough to withstand a deceleration in stimulus, while Friday’s mixed nonfarm payroll report continued to call into question the quality of the job market recovery, fostering optimism that the Central Bank will use caution in reining in its asset purchases.

Our Trend Tracking Indexes (TTIs) recovered from last week’s drubbing and closed higher:

Domestic TTI: +1.28% (last week +0.84%)

International TTI: +4.31% (last week +2.43%)

Have a great week.

Ulli…

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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 Scott:

Q: Ulli: What is the sell stop rule on an ETF Bond fund?  Is it the same as on a Mutual Bond Fund?

A: Scott: Yes; it’s the same for either. I use 5%, and we’ve been out of bonds months ago when the stop was triggered.

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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 Friday, September 6, 2013

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/2013/09/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-09052013/

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Market Commentary

Friday, September 6, 2013

CALM BEFORE THE STORM?

U.S. equity markets closed the trading day near the flat line, bouncing back from their early session lows, which may have been due to an increase in geopolitical strain as President Obama was met with resistance from the global community regarding his plan to carry out a limited military strike on Syria.

Political concerns overshadowed slower-than-forecast jobs growth that eased concern about reductions in Federal Reserve stimulus. For the week, the S&P 500 finished up 1.4 percent and the Nasdaq was up 2 percent. The Dow rose 0.8 percent to snap a streak of four weekly declines.

Prior to the opening bell, it was reported that nonfarm payrolls increased by 169,000 in August, below the consensus of 175,000. The unemployment rate, however, slipped to 7.3% from 7.4%, the lowest since 2008, but that was the result of a drop in the labor force participation rate to 63.2%. The one bright spot could be found in aggregate income, which increased 0.6%. This plodding along of employment growth, no matter how poorly and despite constant revisions to the downside, may be the key reason for the Fed to announce later this month that it will start to taper its asset purchases.

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