Major equity indexes tallied another session in red territory as pessimism continues to reign supreme on Wall Street. Despite a strong rally at the opening bell, stocks ultimately failed to hold onto gains as profit taking pressures quickly returned given the looming uncertainties stemming from the “fiscal cliff” at home. In the Euro zone, policymakers agreed to give Greece two more years until 2016 to pay down its budget deficit and stick with the euro; additionally, finance ministers put off until November 20th the decision on just exactly how to meet further Greek aid needs [see also Euro Free Europe ETFdb Portfolio].
The Nasdaq was the worst performer again as heavy profit taking pressures in the tech-sector dragged QQQ down 0.69% on the day. The S&P 500 ETF (SPY) proved most resilient, shedding 0.34%, while the Dow Jones ETF (DIA) lagged slightly behind, losing 0.40% as the closing bell rang. Pushing off looming Greek debt drama (again) didn’t bode too well with investors overseas as European markets tallied another red session [see Free Report: How To Pick The Right ETF Every Time].
Bond ETF Roundup
U.S. Treasuries took the lead higher as “risk off” sentiment permeated the fixed-income market for yet another day; not surprisingly, “junk bonds” turned in a negative performance as investors sought after higher credit quality securities in the face of the looming “fiscal cliff”.
Commodity ETF Roundup
The U.S. dollar index crept higher for another day, paving the way lower for gold prices, while silver futures managed to tally a minor gain. Natural gas futures extended their rally from yesterday as cold weather across the United States prompted speculation that stockpiles could begin to drop.
ETF Chart Of The Day #1: UNG
The United States Natural Gas Fund (UNG) was one of the best performers, gaining a whopping 4.81% on the day. Natural gas prices soared higher from the open right through the closing bell on Wall Street, settling just shy of the high on day around $22 a share. Speculators have been piling into this commodity over the last two sessions in anticipation that cold weather will persist and ultimately eat away at inventory stockpiles [see our Energy Bull ETFdb Portfolio].
ETF Chart Of The Day #2: FXI
The iShares FTSE China 25 Index Fund (FXI) was one of the worst performers, shedding 1.56% on the day. Chinese markets took a nosedive after it was reported that the government may expand a property tax trial. FXI did manage to regain a lot of lost ground following its gap lower at the opening bell; however, the bears ultimately prevailed and this ETF posted a loss on the day. From a year-to-date perspective, FXI is up roughly 3% [see also Schiff: This Is The Calm Before The Storm].
ETF Fun Fact Of The Day
The best performing themed strategy in the trailing 3-year period is our High Yield ETFdb Portfolio; this strategy is up an impressive 39.15%.
Disclosure: No positions at time of writing.