Major Market ETFs Extend Losses On Weak Economic Data; GDX Soars, IWM Slips

Ulli Market Review Contact

[Chart courtesy of MarketWatch.com]

Major market ETFs got spanked on Thursday closing lower for the fifth straight day with the Dow industrials retreating for the 11th out of 12 sessions when the Philly Fed manufacturing index contracted unexpectedly to -5.8 in May from 8.5 in April as export growth slowed.

Treasury 10-year yields headed towards record lows as Greece’s future membership in the single-currency union continues to spook investors, spurring demand for safe haven US assets.

The Dow Jones Industrial Average (DJIA) tumbled 156.06 points, and the S&P 500 Index (SPX) slipped 1.5 percent, its lowest in four months. Consumer discretionary  fared the worst among the index’s 10 business groups.

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US Stocks End Lower Despite Decent Economic Data; UNG Jumps, PSTL Slides

Ulli Market Review Contact

[Chart courtesy of MarketWatch.com]

Robust US economic data on factory output and housing failed to halt the broad slide as US stocks closed lower Wednesday for the fourth straight trading session. Though the day had started off strongly, but concerns over Greece weighed on investor sentiments and down we went.

Yield on the benchmark 10-year Treasuries sank to a seven-month low after the US Federal Reserve said further intervention can’t be ruled out to maintain the growth momentum while the European Central Bank announced it would suspend some operations with Greek banks.

After surging 90 points earlier, the Dow Jones Industrial Average (DJIA) shed 33.45 points to settle at 12,598.33, the lowest level since Jan 18.

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Delayed Posting

Ulli Uncategorized Contact

I will  be traveling over the next few days, including the weekend, and will return late Monday.

I should be able to get most posts out on time, with the exception of today’s market commentary. I anticipate to be able to have it online by around 8 PM PST.

Ulli…

 

7 ETF Model Portfolios You Can Use – Updated through 5/15/2012

Ulli Model ETF Portfolios Contact

Continued weakness caused by Europe’s uncertainties pulled the S&P 500 down another -2.4% since last week’s ETF Model Portfolio update.

Besides the fear of contagion from the Greek debt crisis along with no current government and new elections slated for June 16, markets are faced with having to deal with the lack of concrete solutions in sight.

Not helping matters domestically was JPM’s sudden and unexpected $2 billion trading loss, which just underscores the fact that derivatives trading and risk management are two things that don’t necessarily function in tandem. There will be much more fallout in my opinion.

Today’s after hours surprise came from JC Penny, which posted a loss, with shares trading down by some 13%. My point is that momentum is slowing, and you’d be well advised to pay attention to your trailing sell stops.

Here’s the latest update:

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US Equity ETFs Slide As Greece’s Exit Continues To Loom; VXX Surges, GLDX Plummets

Ulli Market Review Contact

[Chart courtesy of MarketWatch.com]

US equity ETFs retreated Tuesday, while the Dow inched towards its four-month low as developments from eurozone kept investors edgy despite steady economic numbers from the home-front.

US retail sales grew by 0.1 percent in April, while CPI reading changed little for the month. The New York Empire State Index showed manufacturing bounced bank in May, zooming to 17.1 in May from 6.6 in April.

US Treasuries yields traded close to seven-month lows, with the 10-year benchmark yields rising slightly after European statistics office reported little GDP growth in the region in Q1, beating a 0.2 percent contraction forecast.

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US Stocks Get Clobbered As Greece Heads Towards Euro Exit; International TTI Signals ‘Sell’

Ulli Market Review Contact

[Chart courtesy of MarketWatch.com]

US equities marched south Monday with all three indexes losing about one percent as markets remained concerned over the future of the currency-union in Europe and the safety of American banks following JP Morgan’s unexpected 2-billion trading loss.

Greece’s political parties struggled to form a coalition over the weekend, fuelling fears of a re-election that is expected to swing towards the extreme lefts who have vowed to reverse the country’s austerity measures, risking its continuation in the eurozone. Long-term, that would be the best solution for Greece.

The Dow Jones Industrial Average (DJIA) tumbled 125.25 points while the S&P 500 Index (SPX) lost 19.64 points to settle at 1338.35 with the financial sector faring the worst among the 10 business groups.

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