Slipping And Sliding

Tue pic

[Chart courtesy of MarketWatch.com]

1. Moving The Markets

It was a choppy and sloppy session as the S&P 500 headed into record territory early on but was not able to hold on to those gains.

The day was light in regards to economic data but confusion reigned as releases showed a mixed picture with the labor market on one hand demonstrating improvement, as job openings indicated a better than expected demand.

On the other hand, the negative influence was the fact that wholesale inventories increased meaning that businesses could not sell their goods as quickly as had been assumed. This proved to be the nail in the coffin for the indexes as we slowly slid towards the close. Not helping matters was a slide in copper and oil prices due to concerns about the Chinese economy.

Our 10 ETFs in the Spotlight pulled back as well with none of them making new highs today but 7 of them currently showing gains YTD.

2. ETFs in the Spotlight

In case you missed the announcement and description of this section, you can read it here again.

It features 10 broadly diversified ETFs from my HighVolume list as posted every Monday. Furthermore, they are screened for the lowest MaxDD% number meaning they have been showing better resistance to temporary sell offs than all others over the past year.

In other words, none of them ever triggered their 7.5% sell stop level during this time period, which included a variety of severe market pullbacks but no move into outright bear market territory.

Here are the 10 candidates:

MaxDD

All of them are in “buy” mode meaning their prices are above their respective long term trend lines by the percentage indicated (%M/A).

Year to date, here’s how the above candidates have fared so far:

YTD

To be clear, the first table above shows the position of the various ETFs in relation to their respective long term trend lines (%M/A), while the second one tracks their trailing sell stops in the “Off High” column.

3. Domestic Trend Tracking Indexes (TTIs)

Our Trend Tracking Indexes (TTIs) pulled back again and closed as follows:

Domestic TTI: +4.07% (last close +4.31%)

International TTI: +5.23% (last close +5.60%)

Disclosure: I am obliged to inform you that I, as well as advisory clients of mine, own some of these listed ETFs. Furthermore, they do not represent a specific investment recommendation for you, they merely show which ETFs from the universe I track are falling within the guidelines specified.

About Ulli Niemann

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