Ulli... The ETF Bully

ETFs/Mutual Funds On The Cutline – Updated Through 5/24/2013

Ulli Monday, 27 May 2013, 6:00 AM 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 326 (last week 341) of them 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. 63 ETFs (last week 69) have managed to remain in bullish territory after the recent market volatility.

The third report covers Mutual Funds on the Cutline. There are currently 818 (last week 826) above the line and 41 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.

Last Week In Review: ETF News And Blog Posts To 5/26/2013

Ulli Sunday, 26 May 2013, 8:00 AM Market Review Contact

In case you missed it, here’s a summary of the ETF topics and market reviews I posted to my blog during the week ending on 5/26/2013.

Thanks to the Fed’s confusing messages, in part by Bernanke and in part by different Fed presidents, the markets decided that it was time to face the reality of possible tapering off of the QE programs in the not too distant future.

As a result, the major indexes closed the week down, but off their lows, with the S&P 500 surrendering about 1%. It now remains to be seen if next week the dip buyers show up again to take advantage of lower prices so that relentless and euphoric bullishness can be restored.

It may very well happen until, one day, it doesn’t; and the party comes to an end. That’s why I keep harping on you having an exit strategy in place. You may not need it for a while, but you’ll be glad you did once the day of reckoning arrives.

Over past week, we covered the following:

One Man’s Opinion: Was Bernanke’s Congressional Testimony More Of The Same?

Ulli Sunday, 26 May 2013, 6:00 AM Market Commentary Contact

Markets reacted sharply earlier this week after Federal Reserve Chairman Ben Bernanke’s latest Congressional testimony revealed the central bank discussed starting to taper its bond purchase program at the latest FOMC meeting.

But Heather Loomis, executive director of fixed income at JP Morgan Private Bank, feels Bernanke’s statement was very balanced, and the volatile reaction from the bond and the stock markets was more of a function of the markets grasping for some news and trying to read into both the prepared remarks and the Q&A. What Bernanke really said was more of the same – that we are going to be watching the data, that we have seen improvement, but we have yet still more improvement to see, she observed.

Asked if comments by the different Fed presidents added to the noise, Heather answered in the affirmative. Comments by the various Federal Reserve Bank presidents have not lent additional clarity to Bernanke’s statements, they probably added additional confusion. But if one could summarize the direction of them, it’s that: “we are watching this data closely”.

New ETFs On The Block: Cambria Shareholder Yield ETF (SYLD)

Ulli Saturday, 25 May 2013, 6:01 AM Fixed Income ETFs Contact

Cambria Investment Management, the El Segundo, California-based money manager of the AdvisorShares Cambria Global Tactical ETF (GTAA), has launched the first ETF in a lineup of funds that will provide exposure to yield rich equities both in the US and abroad. It’s the company’s first solo effort after teaming up with AdvisorShares on GTAA, a global tactical exchange-traded fund.

The income-focused Cambria Shareholder Yield ETF (SYLD) is comprised of US stocks that have historically ranked among the highest in shareholder yields. The fund employs an algorithm to select companies based on their historic free cash flows, dividend yield, share buybacks and debt repayment. Cash dividend payout, share buybacks and debt repayment are collectively known as ‘shareholder yield’. The algorithm also considers quality, value and momentum factors in the final portfolio construction.

05-24-2013

Ulli Friday, 24 May 2013, 4:31 PM Newsletter Archives Contact

ETF/No Load Fund Tracker Newsletter For Friday, May 24, 2013

ETF/No Load Fund Tracker StatSheet

————————————————————-

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

https://theetfbully.com/2013/05/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-05232013/

————————————————————

Market Commentary

Friday, May 24, 2013

BEARS PASS BULLS HEADING INTO THE WEEKEND

A quiet, low-volume session Friday drifted to a mixed close with the three major stock indexes posting their first negative week since mid-April on lingering concern that the central bank may scale back its stimulus measures to support the economy.

The Dow Jones Industrial Average closed marginally higher by 9 points (0.1%) at 15,303, while the Standard & Poor’s 500 Index and the Nasdaq Composite descended 1 point to close at 1,650 and 3,499, respectively. Both lost ground for a third-straight day, a first in 2013 for the two indexes. In light volume, 591 million shares were traded on the NYSE, and 1.4 billion shares changed hands on the Nasdaq.

The major averages began the day on a lower note as nine of ten sectors saw losses of more than 0.5%. The consumer staples sector (XLP) was the lone exception as the group spent the entire day in positive territory thanks to the relative strength of Dow component Procter & Gamble. The second-largest staple stock advanced 4.1% after the company reaffirmed its fourth quarter guidance and named Alan Lafley President, Chairman, and CEO. Ahead of the holiday weekend, the broader market drifted back towards yesterday’s closing levels.

The energy space lost 0.4% as crude oil shed 0.4% to end at $93.92. Industrials also pressured the broader market as transportation-related names sold off. Relative weakness in truckers, delivery services, and shippers caused the Dow Jones Transportation Average to lose 0.5%.

Cyclical groups saw comparable losses in early action. However, the financial sector displayed some afternoon strength as major banks registered gains. Today’s biggest laggards could be found in the high-yielding utilities sector as the group continued its recent weakness. Including today’s 1.0% decline, the sector lost 3.7% this week, and is down 6.7% in May.

For the week, the Dow fell 0.3 percent, while the S&P 500 and the Nasdaq each dropped 1.1 percent. The S&P 500 had traded below its 14-day moving average – 1,647.91 – during the day but closed just couple of points above the level.

Overall, the U.S. stock market’s pullbacks have been short and shallow since November as traders have taken any weakness as an opportunity to increase long positions. Stocks ended their weekly record-high streak on uneasiness surrounding the impact of the potential Fed downshifting of its asset purchases.

These concerns came courtesy of Fed’s Chief Bernanke’s testimony on Capitol Hill offering mixed signals regarding asset purchases. Following the Fed events, Japanese stocks tumbled the most since the aftermath of the March 2011 earthquake, as the Fed tightening fears were exacerbated by a report showing an unexpected contraction in Chinese manufacturing.

However, stocks managed to limit losses, led by the Dow, aided by stronger-than-forecasted earnings reports from Home Depot and Hewlett-Packard. Also, with existing home sales rising to a pace not seen since November 2009, and new home sales exceeding expectations, while jobless claims fell more than expected to compliment Friday’s durable goods report, all contributed to the damage control.

Our Trend Tracking Indexes (TTIs) joined the major indexes and came off their lofty levels ending the week as follows:

Domestic TTI: +4.08% (last week +5.07%)

International TTI: +8.29% (last week +10.09%)

We remain fully invested subject to our trailing sell stops.

Have a great week.

Ulli…

————————————————————-

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 Jake:

Q: Ulli: Thanks again for the assistance you gave me during our recent phone conversation. Among other things, you mentioned that you were working on a new e-book with the thought provoking title “Beating the S&P…with the S&P.” Can you elaborate again as to when that project will be finished?

A: Jake: Yes, I indeed am working on this e-book, which will be made available for free to anyone who is interested in this topic. It covers the past 13 years and shows the many advantages of using trend tracking vs. Buy-and-Hold backed by hard evidence and many truly enlightening charts. Barring any unforeseen circumstances, I hope to have it finished by the beginning of July.

———————————————————-

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/

———————————————————

Back issues of the ETF/No Load Fund Tracker are available on the web at:

https://theetfbully.com/newsletter-archives/