Last Week In Review: ETF News And Blog Posts To 3/11/2012

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 3/11/2012.

Last Tuesday’s sell off took the starch out of upward momentum but, so far, it turned out to be a one day pullback, as the major indexes recovered and recouped their losses over the remaining three trading days.

It looks as though we’re inching again towards overhead resistance lurking in the 1,370 area for the S&P 500 and 13k for the Dow Jones Industrials.

While the jobs report was somewhat better than mainstream economists had expected, it’s questionable in my mind whether that is enough to push convincingly through the glass ceiling; a new impetus maybe necessary to accomplish that feat.

This week, we covered the following:

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The Economy Is Gathering Pace; Do We Need Another Round Of QE?

Ulli Market Commentary Contact

The US Federal Reserve didn’t mention about another round of quantitative easing in its latest round of FOMC meeting, leaving many disappointed. Do we really need another round of money supply in the economy? Or will that be the recipe for spiraling inflation, considering that energy prices have stubbornly remained high?

If Joseph Balestrino, fixed-income chief at Federated Investors is to be believed, the US economy can very well do without another round of assets purchase.

The economy is not on fire, but it’s not in bad shape either. The Fed had declared that QE3 was contingent on either the economy going backwards or inflation not rising, and Joe believes none of the conditions are being fulfilled now. He, however, believes that Fed chairman Bernanke may initiate another round of monetary expansion exercise in September.

But doesn’t the extra money in the system encourage better investor participation, since investors have been cautiously optimistic about the economy in general and about the recent stock market rally in particular?

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Should You Consider A Commercial Real Estate ETF Now?

Ulli ETF News Contact

As the economy shows signs of a slow recovery with successive lower unemployment-rate readings and better overall economic numbers, is it time to raise a toast for the real estate sector?

Well, if you look at the US residential property market, the indicators have been mixed with the latest S&P Case Shiller Home Price Index readings dropping by 0.5 percent for the month and 4 percent on the year. On the other hand, existing home sales and inventory levels show a trend reversal with enough indications of a slow but gradual recovery.

The developments in the commercial property market, in contrast, have been more even. The Society of Industrial and Office Realtors CRE Index, though remains lower overall, is moving north while the National Association of Realtors forecasts lower vacancy rates in all segments of the commercial real estate segment.

Investors may consider commercial real estate for diversification purposes as well. Most don’t have any commercial exposure in their portfolios though they are invested in the residential segment through home ownership.

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03-09-2012

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ETF/No Load Fund Tracker Newsletter For Friday, March 9, 2012

ETF/No Load Fund Tracker StatSheet

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

https://theetfbully.com/2012/03/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-03082012/

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Market Commentary

Friday, March 9, 2012

EQUITY ETFs PUSH HIGHER ON STRONG JOBS DATA; REMX UP AS MATERIALS GAIN, VXX TUMBLES

U.S. stocks closed higher for the third straight session on Friday after a stronger-than-expected monthly jobs report confirmed a recovery that’s gaining momentum.

Gains were trimmed in late trading after Greece’s debt-swap deal was announced a “credit event” since Athens exercised the so-called collective action clause (CAC) forcing some creditors to accept losses.

The Dow Jones Industrial Average (DJIA) was up 0.1 percent to 12,922.02, with 20 out of 30 components advancing while the S&P 500 Index (SPX) advanced 0.4 percent to 1370.87, eking out its fourth weekly gain.

Treasuries ended up lower for the week as U.S. payrolls beat analysts’ expectations, adding 227,000 non-farm jobs for the third consecutive month. This fueled speculations of the Fed pausing monetary stimulus as growth gains pace. 10-year note yields hit the highest weekly level as risk sentiments improved after Athens announced it has reached its target for the biggest sovereign debt restructuring in history.

ETFs in the news:

Market correlated sectors like minerals are doing well as stock indexes continue to rise. The Market Vectors Rare Earth/Strategic Metals ETF (REMX) emerged the day’s top-performer, adding 4.77 percent on the day. Other producer linked ETFs like SPDR S&P Metals & Mining ETF (XME) also performed well on the winner’s list.

The iShares Dow Jones U.S. Home Construction Index Fund (ITB) is back with a bang after struggling for weeks, adding 2.82 percent for the day. It has hit new 2012 highs after the past three days of gains.

The Guggenheim Solar ETF (TAN) added 2.85 percent on the day, its second day of gains, after suffering six days of downturn.

Among the day’s top losers, the fear-tracking iPath S&P 500 VIX Short Term Futures ETN (VXX) shed 1.93 percent as markets surged for the third straight day.

The iPath Dow Jones UBS Natural Gas Subindex Total Return ETN (GAZ) slipped 0.19 percent as high premium continues to weigh the product down.

Oil for April delivery surged 82 cents to $107.40 a barrel and Gold futures for April delivery ended $12.80 higher at $1,683.90 an ounce.

Our Trend Tracking Indexes (TTIs) remain on the bullish side of the trend line with the Domestic TTI hovering at +5.23 percent and the International TTI at +4.73%.

Have a great week.

Ulli…

Disclosure: No holdings

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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 Mike:

Q: Ulli: I just subscribed to your newsletter and have been reading your site and archives with interest.
I am very interested in your Aggressive ETF Growth Portfolio.  I have accounts at Scottrade and Fidelity, so I’m able to purchase the ETF’s in the portfolio. What I don’t understand is when and what to buy or sell. Would you please point me in the right direction?

A: Mike: No problem. The what to buy is the easy answer as all ETFs are listed in the model portfolios. You should buy the domestic ETFs/bonds when our Domestic Trend Tracking Index (TTI) is in bullish territory, which it is.

The total amount of the investment is determined by your risk tolerance. I have a short video on that topic on my blog. Notice my welcome video on the right; then scroll down past the first ad and view the risk tolerance video.

Just because the market is in bullish territory does not mean it will stay there. So you need to protect yourself via trailing sell stops just as the matrix in the model portfolio shows. For domestic ETFs, I use 7%, for sector/country ETFs, I use 10% and for Bond ETF, I recommend 5%.

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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, March 9, 2012

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/2012/03/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-03082012/

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Market Commentary

Friday, March 9, 2012

EQUITY ETFs PUSH HIGHER ON STRONG JOBS DATA; REMX UP AS MATERIALS GAIN, VXX TUMBLES

U.S. stocks closed higher for the third straight session on Friday after a stronger-than-expected monthly jobs report confirmed a recovery that’s gaining momentum.

Gains were trimmed in late trading after Greece’s debt-swap deal was announced a “credit event” since Athens exercised the so-called collective action clause (CAC) forcing some creditors to accept losses.

The Dow Jones Industrial Average (DJIA) was up 0.1 percent to 12,922.02, with 20 out of 30 components advancing while the S&P 500 Index (SPX) advanced 0.4 percent to 1370.87, eking out its fourth weekly gain.

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Weekly StatSheet For The ETF/No Load Fund Tracker Newsletter – Updated Through 03/08/2012

Ulli ETF StatSheet Contact

ETF/Mutual Fund Data updated through Thursday, March 8, 2012

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

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 broken above its long term trend line (red) by +5.04%. Be sure to tune into my blog for the latest updates.

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