Yet Another Up-Down Week

by on October 1, 2011 | ETFs Mentioned:

Volatility remains the name of the game. Equity indexes continue to fluctuate wildly and Wall Street started the week with a rally, but investor confidence is clearly lacking as stocks have fallen victim to high-volume profit taking near the close of almost every single trading session. The debt drama in Europe remains unresolved and investors are anxiously awaiting a concrete plan of action from European lawmakers. Gold drifted lower for the week and the precious metal struggled to rise back above $1,700 an ounce even amidst stock market weakness, managing to settle below the $1,650 level for the week on fairly light trading volume.

Actionable ETF Trade Ideas

Last Week’s Actionable ETF Ideas
Ticker Position Performance
AMJ

Long

4.7%
TUR

Long

2.3%
ZROZ

Long

0%

Our picks from Monday’s Insider fared quite well this week, with two of our recommendations posting very respectable gains during another choppy week on Wall Street. Below, we highlight how our trade ideas fared during the week [sign up for a free trial of ETFdb Pro to get actionable ETF ideas every Monday, as well as access to more than 25 all-ETF model portfolios].

Trade #1 Long AMJ: Up 4.7%

This trade went very well as our technical analysis allowed for us to lock in a solid 4.7% gain in just two days. This ETN opened right where we expected it to on Monday and managed to hold support above $34 a share. Our price target of $36 a share was hit on Tuesday morning, and taking profits at this level was well-timed, seeing as AMJ closed right above $34 a share on Friday.

Trade #2 Long TUR: Up 2.3%

Our recommendation to long TUR has turned out nicely as the fund continues to demonstrate resilience and creep higher, while developed market equities as a whole have endured yet another frustrating range-bound week. Although this ETF didn’t hit our intended price target of $50 a share, we remain bullish on TUR going forward; the fund is clearly establishing rising levels of support, quite a commendable feat in this chaotic environment.

Trade #3 Long ZROZ: No Trade

This was our fundamentally defensive position for the week, however, this ETF opened below our outlined support at $110 a share on Monday morning, voiding this trade right from the start. Our technical analysis helped us avoid a trade that would have gone practically nowhere, seeing as how ZROZ closed just pennies above $110 a share on Friday. We’re still bullish on this pick so long as shares can hold support above the $110 level next week.

ETFdb Portfolios

Retirement ETFdb Portfolios

Stocks fluctuated last week and our retirement portfolios held their ground surprisingly well, with our Aggressive Portfolio leading the way higher. From a year-to-date perspective, our conservative Ready To Retire portfolios is the only one still holding onto gains.

ETFdb Portfolio Weekly Return YTD Return
Aggressive 2.04% -11.51%
20 Years To Retirement 1.67% -7.63%
Cheapskate 1.63% n/a
30 Years To Retirement 1.62% -7.52%
10 Years To Retirement 1.38% -4.96%
Moderate 1.14% -3.98%
5 Years To Retirement 1.01% -2.86%
Ready To Retire 0.43% 1.00%

Themed Portfolio

Our themed portfolios performed quite well during a rather shaky week on Wall Street. The RAFI and Global Titans portfolios led the way higher this past week, gaining over three full percentage points each, while the S&P 500 was fairly flat. From a year-to-date perspective, our ultra-defensive Sky Is Falling Portfolio and our Simple (But Effective ) Safe Haven Portfolio are the only ones in positive territory.

ETFdb Portfolio Weekly Return YTD Return
RAFI 3.31% -15.84%
Global Titans 3.07% n/a
Ex-U.S 2.31% -12.67%
Ben Graham 50/50 1.71% n/a
Simple (But Effective) Safe Haven 1.37% 3.95%
Asia Centric 1.29% -11.86%
Equal Weight 1.19% n/a
High Yield 1.15% -2.01%
Ex-Europe 0.92% -5.60%
Alpha Seeker Portfolio 2.0 0.81% -6.50%
Small Cap 0.78% n/a
Actively-Managed 0.63% -5.51%
AlphaDEX 0.55% n/a
Emerging & Frontier Markets 0.54% -15.60%
High-Tax Bracket 0.32% -4.87%
The Sky Is Falling 0.18% 4.97%
LatAm Centric -0.03% n/a
Black Swan Hyperinflation -0.14% -5.81%
Better-Than-AGG Total Bond Market -0.14% n/a

New ETF Highlights

September continues to be a very busy month for the ETF industry as waves of new product launches continue to hit the street, including a suite of three new sector funds from State Street.  Check out our ETF Launch Center for complete updates on all new ETFs.

ETF Launches

SPDR S&P Software & Services ETF (XSW)

  • Launch: September 29th
  • ETFdb Category: Technology Equities
  • Structure: ETF
  • Expense Ratio: 0.35%

This ETF will seek to replicate the S&P Software & Services Select Industry Index, a benchmark that consists of companies in the following sub-sectors: application software, data processing and outsourced services, home entertainment software, internet software and services, IT consulting, and systems software.

SPDR S&P Health Care Services ETF (XHS)

XHS will be the first pure play health care services ETF, offering investors exposure to a basket of 60 health care service providers.

SPDR S&P Aerospace & Defense ETF (XAR)

This ETF will seek to replicate the S&P Aerospace & Defense Select Industry Index, which consist of about 35 companies. XAR will be the cheapest ETF offering exposure to the aerospace and defense sector, joining the iShares Dow Jones U.S. Aerospace & Defense Index Fund (ITA) and PowerShares Aerospace & Defense Portfolio (PPA).

Disclosure: No positions at time of writing.