As recently announced, I have expanded the previously limited ETF Cutline list to include all funds featured in Thursday’s StatSheet, or more specifically the ETF Master List.
In this week’s report, there are 321 ETFs above the cutline (trend line) and 75 below it, of which 20 are listed. This new and expanded version will now make it very easy for you to follow those ETFs that have crossed their trend line to the upside and are improving their momentum numbers.
For example, if your are starting at the cutline on page 8 and are moving up, you will find the first ETF with all positive momentum numbers and 0.00% in the DrawDown column (DD%) to be FXY in the +153 position. The next one would be QQQ in the +229 position and so on. Once you reach page 1, you’ll see several candidates with positive numbers across, but you’ll also notice that they have moved above their trend line (%M/A column) by considerable percentages.
As a result of the market having had an up week, more ETFs have improved their positions and momentum numbers during the past 5 trading days.
Take a look at this new expanded ETF Cutline report:
While in my view the odds are greatly enhanced to invest in ETFs with positive momentum numbers, there is simply no guarantee that their up trend will continue. It’s therefore imperative that you employ my recommended trailing sell stop discipline, to limit downside risk, should you encounter adverse market conditions.
Along the same lines, consider that in these times of uncertainty, there is nothing wrong with temporarily having a higher cash position, until better opportunities present themselves.
Disclosure: No holdings in FXY and QQQ