7 ETF Model Portfolios You Can Use – Updated through 6/12/2012

Ulli Model ETF Portfolios Contact

The prior week’s 3.5% loss by the S&P 500 was followed by this week’s 2.95% gain, as the markets reacted to the potential Spain bailout estimated to be in the range of $100 billion. Of course, no one yet has asked the hard question as to where the money is actually coming from.

Nevertheless, simply hope along with yesterday’s dead cat bounce based on rumors of a coordinated effort by the major central banks to come up with another stimulus plan was enough to pull the S&P 500 back to last Friday’s closing level.

While upward momentum has slowed, there will always be rebound rallies before reality finally sets in, which is that a global slowdown is underway. While it can be temporarily interrupted by fancy intervention schemes, they usually prove to be ephemeral in nature.

Our model ETF portfolios held steady because most of our equity holdings were liquidated as their respective trailing sell stops had been triggered.

Take a look at the latest update:

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Equities Rise On Fed Stimulus Hopes; TAN Soars, VXX Drops

Ulli Market Review Contact

[Chart courtesy of MarketWatch.com]

Domestic equities surged more than one percent Tuesday, wiping off losses suffered Monday, as investors took a cue from Europe’s peripheral markets after Spanish bonds came off Euro-era record highs on speculation the Federal Reserve and other central banks will restart asset purchase programs. Sure, we’ve heard that one before resulting in very short-term effects.

Treasuries retreated as Wall Street traders remained upbeat on another round of monetary stimulus to boost a faltering economy. The Dow Jones Industrial Average (DJIA) zoomed 162.57 points, wiping out Monday’s 142.97 points loss. All but one of the 30-component blue-chip-index finished lower for the day.

The S&P 500 Index (SPX) added 15.25 points with materials and financial gaining the most among the 10 business groups. The NASDAQ Composite Index (COMP) gained 33.34 points to settle at 2843.07.

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Equity ETFs Drop As Spain Rescue Disappoints And Greece’s Election Looms Large; VIXY Pops, GAZ Crashes

Ulli Market Review Contact

[Chart courtesy of MarketWatch.com]

US stocks swung wildly Monday giving up early gains to close sharply lower following the best week of the year as investors remained concerned over the upcoming Greek elections and optimism over Spain’s $125 billion bank bailout-deal fizzled on worries that the benefits will not be sustained.

The treasury 30-year bonds pushed higher for the first-time in six days after Spanish yields surged to 6.5 percent over fears that the Iberian nation would be soon locked out of the capital markets, forcing it to seek external help.

If you find these feeble attempts to rescue Spain (and others) confusing, just like Wall Street does, you might want to review this short video from ZeroHedge explaining the ins and outs of the debt circus being presented in Euroland. This should clear up any misconceptions you may have.

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ETFs/Mutual Funds On The Cutline – Updated Through 6/8/2012

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 216 (last week 92) 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. 33 ETFs (last week 14) have managed to remain in bullish territory after the recent market volatility.

The third report covers Mutual Funds on the Cutline. There are currently 521 (last week 126) above the line and 340 below it out of the 861 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 6/10/2012

Ulli 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 6/10/2012.

Wishful thinking and continued hope that the Europeans will finally get their act together, and rescue Spain from its severe predicament, supported market momentum as the recent slide turned into a Viagra move off the lows.

Whether this snap-back will simply turn out to be another dead cat bounce is too early to tell, as next week’s Greek elections and the Spanish financial audits will sure play a role in future market direction.

Looking at the big picture, my guess is at this time that the financial implications of a Spain bailout are too severe in terms of magnitude, especially when considering that Italy is waiting on deck. While there may be some initial euphoria about a potential solution, I think any market bounce will be of short duration.

This week, we covered the following:

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New ETFs On The Block: The BNP Paribas STREAM S&P Dynamic Roll Global Commodities Fund (BNPC)

Ulli Coomodity ETFs Contact

The latest entrant in the ETF industry is French banking giant BNP Paribas. The French bank has launched an exchange-traded commodity fund that is based on a contango-fighting strategy, i.e. it tries to minimize negative impact of the roll process when futures markets are in contango while maximizing yields from rolling futures contract when the market experiences backwardation.

The BNP Paribas STREAM S&P Dynamic Roll Global Commodities Fund (BNPC) will replicate the broad-based commodities futures index, the S&P GSCI Dynamic Roll Excess Return Index, which uses a flexible methodology that rebalances the portfolio depending upon market conditions.

The benchmark index includes two dozen commodities including many products from energy, precious metals, base metals, grains and livestock with a major bias in the energy sector. Brent Crude and WTI Crude nearly make up for half of the portfolio (48 percent) with gasoline, heating oil and natural gas making up another 20 percent.

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