US Stocks Fight Back Clinging To Rumors After Sharp Initial Fall; GLDX Glitters, GAZ Sinks

Ulli Uncategorized Contact

[Chart courtesy of MarketWatch.com]

US stocks fought back in the final hour of trading Wednesday despite witnessing sharp declines with the NASDAQ and the S&P 500 reclaiming the green territory even though the threat of a possible Greece exit continues hang over the markets. If things look desperate, hanging on to the latest rumor can restore momentum as ZeroHedge points out.

Sentiment turned weak following a late-Tuesday afternoon warning from the Congressional Budget Office that the economy may slip back into recession if government spending-cuts and steep tax hikes are put into action in January.

Treasuries surged ahead, pushing yields on 10-year notes to near record lows, as news of preparations for Greece’s eventual exit from the 17-member currency zone hit the market.

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7 ETF Model Portfolios You Can Use – Updated through 5/22/2012

Ulli Model ETF Portfolios Contact

Thanks to Monday’s dead cat bounce, if that’s what it was, the S&P 500 only leaked to a loss of some 1% since last week’s Model ETF Portfolio update.

Initial euphoria in regards to “Fallbook’s” IPO last Friday has vanished, and it now appears that the masses have been slaughtered as the IPO price from 3 days ago remains nothing but a dream.

Questionable news from around the world’s hotspots makes me believe that the downside has not played itself out and there is more to come. Nothing goes down in a straight line, so we are bound to see the occasional dead cat bounce.

With the International TTI being stuck on the bearish sided of the line, the Domestic TTI heading in that direction, although it’s still stuck on the bullish side, how do you set up a new portfolio from the below models?

I think the best way is to start allocating only the bond portion of each portfolio and then wait to see where equities are headed. Should they go further south, chances are good that bonds will rally, as the hunt for safety will be on. That’s how I deal with new money in these market conditions.

Here’s the latest update:

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Major Market ETFs In Stall Speed As Concern Over Europe Lingers; VXX Soars, GDXJ Tanks

Ulli Market Review Contact

[Chart courtesy of MarketWatch.com]

Wall Street closed flat Tuesday despite surging in early trade as worries over Europe overshadowed upbeat US economic reports. The above chart says it all.

The markets turned choppy in the last hour of trading as Dow Jones Newswire reported that former Greek Prime Minister Lucas Papademos has said Greece is preparing to leave the 17-member single-currency union.

US Treasuries tumbled as demand for safe haven assets eased ahead of tomorrow’s meeting of finance ministers in Brussels to discuss Europe’s credit crisis. Also a robust existing home sales reading in April, according to National Association of Realtors sales went up 3.4 percent to an annual rate of 4.62 million, helped boost risk appetite.

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US Equities Bounce Back From Worst Week Of The Year

Ulli Market Review Contact

[Chart courtesy of MarketWatch.com]

US stocks bounced back Monday to break the weeklong losing streak as broader markets rallied, despite social-networking site Facebook plummeting more than 10 percent following its Friday debut.

The S&P 500 snapped its six straight day of losses to post its best session in two months while the Dow made the biggest single-day gain in over a month. Sentiments improved amid optimism that a solution to the ongoing sovereign debt crisis will be found soon. Hmm, I think we have been down that road before.

Treasury 10-year yields dropped to near record lows as German and French finance ministers met to discuss strategies to minimize the possible Greek-exit impact.

The Dow Jones Industrial Average (DJIA) jumped 135.10 points, breaking its streak of six consecutive down days.

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Delayed Posting

Ulli Uncategorized Contact

I will  be traveling all day and won’t have a chance to get today’s market commentary out in a timely manner. I anticipate to get it posted and emailed by midnight PST.

Ulli…

ETFs/Mutual Funds On The Cutline – Updated Through 5/18/2012

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 157 (last week 274) 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. 22 ETFs (last week 46) have managed to remain in in bullish territory after the recent sell off.

The third report covers Mutual Funds on the Cutline. There are currently 312 (last week 748) above the line and 549 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.