1. Moving the Markets
Stocks generally trended higher today, mostly driven by some positive earnings announcements and economic data that showed the U.S. economy remains on track for positive growth. Housing data showed that existing home sales hit an eight-month high in June, and the U.S. Consumer Price Index also rose in June.
Chipotle (CMG) continued to steal headlines today after its big earnings announcement yesterday that boosted the stock up 12%. Today, many analysts altered their price targets given yesterday’s news. Some price targets are as high as $800, which would be a 21% gain from the current share price of $659. The average price target, according to Capital IQ, is $675 a share.
Other companies whose earnings reports topped analyst expectations today included Apple (AAPL), Microsoft (MSFT), Netflix (NFLX) and Verizon (VZ). With 23% of S&P 500 companies having reported results, 66.1% posted earnings that topped expectations, according to Thomson Reuters data, above the long-term average of 63%.
While investors remain geared up for more corporate earnings, they are also keeping a close eye on international events in Ukraine and the Middle East.
Our 10 ETFs in the Spotlight picked up steam with 8 of them gaining on the day; one of them made a new high.
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.
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) joined the positive market momentum and closed higher:
Domestic TTI: +3.13% (last close +2.73%)
International TTI: +3.50% (last close +3.06%)
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.
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