ETF/No Load Fund Tracker Newsletter For Friday, October 25, 2013

ETF/No Load Fund Tracker StatSheet




Market Commentary

Friday, October 25, 2013


U.S. equity markets ticked higher on Friday, cementing a third-straight week of gains, aided by’s stronger-than-forecasted revenues and a trouncing of analysts’ quarterly estimates by Dow member Microsoft.

Meanwhile, investors mulled a plethora of mixed global economic data, as U.S. durable goods orders came in mixed, consumer sentiment declined and wholesale inventories rose. Elsewhere, German business sentiment unexpectedly declined, and UK 3Q GDP growth accelerated. The Dow Jones Industrial Average closed 61 points higher (0.4%) at 15,570, the S&P 500 Index gained 8 points (0.4%) to 1,760, and the Nasdaq Composite increased 14 points (0.4%) to 3,943.

In other domestic earnings news, Dow member Procter & Gamble posted inline profits, while UPS posted better-than-expected earnings. Finally, Treasuries, gold and crude oil prices were higher, while the US dollar was nearly unchanged. While there were pockets of weakness during the session, the late push enabled every sector to end the day higher.

The utilities (+1.1%) and telecom services (+1.0%) were the biggest gainers, but still didn’t have much pull in driving the broader market higher given their low weighting in the S&P 500. Modest gains in the consumer discretionary (+0.7%), industrials (+0.5%), financials (+0.4%), energy (+0.4%) and technology (+0.4%) sectors were enough to do that.

Large-cap stocks pretty much led the way in today’s session, which was accented by relatively light volume and the receipt of relatively weak economic data that supported the notion the Fed will stay its current course for longer.

The resilience to selling efforts has been a hallmark of this market since Congress agreed to kick the budget and debt limit cans down the road. In the process, Congress kick started a prevailing belief that their inaction will also lead to inaction by the Federal Reserve. Fortified by that monetary sense of things, the thought that money managers underperforming their benchmarks will be chasing returns, and the fear of missing out on another leg higher, participants have been emboldened to buy on dips.

Indexes also posted gains for the week. The Dow rose 1.1 percent, the S&P 500 gained 0.9 percent and Nasdaq 0.7 percent. The Russell 2000 index of small cap stocks registered its eighth week of gains, its longest streak since 2003.

Our Trend Tracking Indexes (TTIs) joined the party and headed higher as well:

Domestic TTI: +5.01% (last week +4.50%)

International TTI: +8.45% (last week +8.17%)

Have a great week.




All Reader Q & A’s are listed at our web site!
Check it out at:

A note from reader Joel:

Q: Ulli: In your latest e-book, and during various posts throughout the year, you mentioned that certain Index ETFs, like the ones of the low volatility variety, are better suited for the use with trend tracking.

Is there any way to get a list of these?

A: Joel: Actually, I am in the process of revamping the daily commentary to include exactly 10 of these, which are most suitable. They are selected by my MaxDD% indicator, which I will comment on in more detail.

The scheduled change along with these new “ETFs in the Spotlight” will be effective as of 11/4/13 with an announcement being mailed to all readers on the prior day. Look for it.



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About Ulli Niemann

Ulli Niemann is the publisher of "The ETF Bully" and is a Registered Investment Advisor. Learn more
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