ETF/No Load Fund Tracker Newsletter For February 13, 2015
ETF/No Load Fund Tracker StatSheet
THE LINK TO OUR CURRENT ETF/MUTUAL FUND STATSHEET IS:
Friday, February 13, 2015
S&P 500 NOTCHES RECORD HIGH TO CLOSE WEEK
[Chart courtesy of MarketWatch.com]
1. Moving the Markets
The bulls charged forward to close out the second week of trading in February. The S&P 500 closed at a new all-time high of 2,096.99 and the Dow above 18,000 again. This was the first record close of 2015 for the S&P, after 53 record closes last year. Needless to say, investors were smiling at the end of trading today.
What boosted markets higher on the week? International concerns eased, removing some of the anxiety that has been in the market for the past few weeks. Greece’s recent conflict with EU leaders over terms from the bailout funds received several years ago seemed to simmer down. And a cease-fire in Ukraine also lifted additional international concerns. Fourth-quarter earnings season is coming to end, which also removes some uncertainty, as companies were once again able to exceed Wall Street expectations and post nice earnings growth.
Markets are closed for Presidents Day on Monday, but it is a fairly busy week for economic data. Manufacturing activity will be in focus with the release of industrial production, and the Philly and New Year Federal regional surveys. Leading indicators will also give a fresh look into the direction of the economy over the next several months. However, the headlines of the week will likely be the producer price index and the FOMC meeting minutes that are released on Wednesday. The Fed has been able to remain patient while inflation has been muted, keeping interest rates near zero, so both of the releases will be closely watched for additional details as to when the Fed may increase rates.
6 our 10 ETFs in the Spotlight closed up with 5 of them making new highs; 9 of them are showing gains YTD as you can see in table 2.
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:
The above table simply demonstrates the magnitude with which some of the ETFs are fluctuating in regards to their positions above or below their respective individual trend lines (%M/A). A break below, represented by a negative number, shows weakness, while a break above, represented by a positive percentage, shows strength.
For hundreds of ETF/Mutual fund choices, be sure to reference Thursday’s StatSheet.
Year to date, here’s how the above candidates have fared so far:
Again, 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 has been taken out in the “Off High” column.
3. Trend Tracking Indexes (TTIs)
Our Trend Tracking Indexes (TTIs) joined the rally and closed higher. As I wrote yesterday, in the absence of a major sell-off this morning, which did not happen, the International TTI has now generated a new Buy signal effective 2/13/15.
Here’s how this week ended:
Domestic TTI: +3.65% (last Friday +2.77%)—Buy signal effective 10/22/2014
International TTI: +2.39% (last Friday -0.89%)—Buy signal effective 2/13/2015
Have a nice weekend.
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.
READER Q & A FOR THE WEEK
All Reader Q & A’s are listed at our web site!
Check it out at:
Q: Ulli: I was just wondering why you don’t have a diversified REIT, such as VNQ, in your broadly diversified ETFs that you track/recommend.
A: Chuck: When I scanned through the ETF criteria for those to be included in the “ETFs in the Spotlight” list, none of the REITs made the cut. That does not mean they are not a viable investment option, it merely means that they did fulfill the requirement to make it on this particular list.
WOULD YOU LIKE TO HAVE YOUR INVESTMENTS PROFESSIONALLY MANAGED?
Do you have the time to follow our investment plans yourself? If you are a busy professional who would like to have his portfolio managed using our methodology, please contact me directly or get more details at:
Back issues of the ETF/No Load Fund Tracker are available on the web at: