7 ETF Model Portfolios You Can Use – Updated through 6/19/2012

Ulli Model ETF Portfolios Contact

Upward momentum continued powered solely by hopes of a major QE program announcement by the Fed today 2:15 pm EST. The S&P 500 added some 2.6% since last week’s ETF Model Portfolio report, which puts it at a level that is only 4% off the highs YTD.

There is nothing else that has contributed to this rise as just about all recent economic data points were downright negative, which has supported hope of more stimulus to come.

It will be interesting to see if the Fed delivers to the magnitude that is expected and priced in by the markets. If they fall short, and don’t meet these elevated expectations, the major indexes will shift into reverse in a hurry. Stay tuned for today’s market commentary.

Take a look at the latest model portfolio update:

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US Stocks Rise Again On Fed Stimulus Hopes; Will Bernanke Deliver?

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[Chart courtesy of MarketWatch.com]

US stocks rallied Tuesday, adding more than one percent for the day on hopes of extension of the Operation Twist as the US central bank’s two-day long FOMC meeting started today.

Resilient housing data for May boosted sentiments further, pushing US indexes to a five-week high.

Treasuries declined after three continuous gain-days amid growing chatters that the Fed will extend its accommodative policies while investors remained hopeful EU leaders will initiate decisive measures to contain the sovereign debt crisis.

The housing sector showed signs of recovery as application for building permits filed by homebuilders grew the fastest in nearly four years though housing starts, more dependent on weather than permits, fell a little short of forecasts.

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US Equities End Mixed As Spain Takes Center Stage; GAZ Rises, EWP Sinks

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US equities finished mixed Monday with the Dow Industrials wavering as relief over the win of pro-bailout parties in Greece, which diminishes an imminent exit for Athens greatly, proved short lived.

Spanish 10-year borrowing costs hit a euro-era high, breaching the seven percent level that ultimately forced the Dow lower for the day.

Amid speculations that the Federal Reserve will extend its monetary stimulus program over signs of slowdown in the world’s biggest economy, yield on 30-year Treasury bonds dropped to least in more than a week ahead of the central bank’s two-day policy meeting.

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ETFs/Mutual Funds On The Cutline – Updated Through 6/15/2012

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 219 (last week 216) 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. 36 ETFs (last week 33) have managed to remain in bullish territory after the recent market volatility.

The third report covers Mutual Funds on the Cutline. There are currently 551 (last week 521) above the line and 310 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 6/17/2012

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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 6/17/2012.

To heck with the economic data points for the week which, without exception, were simply awful as every one of them came in below expectations.

Well, these days that’s a good thing, as it simply increases hope for another stimulus program due out when the Fed meets next week. Whether they will or not, it is priced in the market and any disappointing Fed announcement will have severe repercussions, as we have reached market levels that are simply not sustainable based on fundamentals.

This week, we covered the following:

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“Bernanke Has Limited Options To Stimulate Growth;” Chief Investment Officer, Strategic Group

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What are the tools available to Federal Reserve Chairman Ben Bernanke to stimulate growth/avoid a double-dip recession in case the European crisis worsens?

In his latest testimony before the US Congress Bernanke claimed the Fed has options available to accelerate the economy. Lincoln Ellis, the Chief Investment Officer for the Strategic Group however, begs to differ and feels there are few fiscal or monetary options available to the Fed Chairman.

There seems to be a tug-of-war going on between Europe and Asia. The latest 0.25 percent deposit and lending rate cut by the People’s Bank of China bodes well for the markets, though it doesn’t necessarily indicate that the Chinese central bank is overly worried about a so-called “hard landing,” because the rate cuts would have been much faster and deeper in that case.

There’s nothing more of great significance in terms of monetary policy the US Federal Reserve could be doing. They have gone all-out to limit the slow down effects on the economy, and it’s now a matter of time before things start to move up. No amount of fiscal or monetary policy will boost the economy unless the global imbalances work their way through the system, particularly in terms of labor, production and the all important consumption.

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