[Chart courtesy of MarketWatch.com]
1. Moving the Markets
U.S. stocks rose Tuesday and moved back into record territory as the Nasdaq set a new all-time high by gaining a meager +0.30%. The rebound comes as quiet summer trading drags on and investors look ahead to a key speech from Federal Reserve chair Janet Yellen on Friday.
Investors are largely in wait-and-see mode ahead of Yellen’s speech on Friday in Jackson Hole, Wyoming, which allegedly will clarify the U.S. Central Bank’s thinking on whether it plans to hike interest rates for the first time this year at its September meeting or continue to hold off.
In the earnings world, it was all about Best Buy (BBY) today. Investors piled into the stock after the big-box chain soared past expectations on earnings and profit, potentially scrambling the conventional wisdom on the outlook for electronics sales. The gains came primarily in consumer electronics and appliances, which posted same-store sales increases of 4% and 8.2%, respectively.
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 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) headed higher as the Nasdaq managed to eke out a new all-time high.
Here’s how we closed 8/23/2016:
Domestic TTI: +3.19% (last close +3.07%)—Buy signal effective 4/4/2016
International TTI: +5.08% (last close +4.69%)—Buy signal effective 7/19/2016
Disclosure: I am obliged to inform you that I, as well as my advisory clients, own some of the ETFs listed in the above table. 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.