[Chart courtesy of MarketWatch.com]
1. Moving The Markets
Losses continued across the markets today, reeling from Wednesday’s downturn after the World Bank lowered its outlook for global economic growth. The Dow fell by over 100 points today, and the Nasdaq and S&P 500 dropped over 0.7% With the domestic markets trending lower, the dollar also fell for a second day as analysts continue to assume that the Federal Reserve will hold interest rates at historically low levels.
In the tech world, we saw Twitter (TWTR) shares climb 3.5% after the social media company announced its COO, Ali Rowghani, had resigned. Apparently investors were happy to see him go. Twitter has struggled this year. The stock is down over 41% so far in 2014.
We also heard today that Tesla (TSLA) is offering up to potential buyers its proprietary technology that is the crown jewel of its model S electric car. The goal, according to Elon Musk, is to spur wider development of electric cars in the market.
Our 10 ETFs in the Spotlight headed south but 9 of them remain on the plus side 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:
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:
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. The “Action” column will signal a “Sell” once the -7.5% point is taken out in the “Off High” column.
3. Domestic Trend Tracking Indexes (TTIs)
Our Trend Tracking Indexes (TTIs) followed the major indexes lower and closed as follows:
Domestic TTI: +3.31% (last close +3.57%)
International TTI: +4.58% (last close +4.80%)
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.