Greek Drama Off The Table

by on March 10, 2012 | ETFs Mentioned:

Stocks endured a rather volatile week as resurfacing Greek drama on Tuesday paved the way for broad-based profit taking. Despite the sell-off, investors’ confidence improved throughout the week as better-than-expected economic data on the home front coupled with optimism kept markets afloat. Equity indexes regained most of their lost ground by the closing bell on Friday as investors cheered on the successful completion of the Greek debt swap arrangement along with an encouraging U.S. employment report.

Actionable ETF Trade Ideas

Last Week’s Actionable ETF Ideas
Ticker Position Performance
XLB

Short


+1.4%
IBB

Short

+0.4%
IWM

Long

-1.9%

Our picks from Monday’s Insider posted a mixed performance as our well timed short recommendations unfortunately gave up gains towards the end of the week as indexes recouped losses. 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 40 all-ETF model portfolios].

Trade #1 Short XLB: Up 1.4%

This recommendation got off to an encouraging start as shares tumbled right from the opening bell on Monday morning. Resurfacing worries surrounding the Greek debt swap sparked a massive, broad-based sell-off on Tuesday, sinking XLB as low as $35.80 a share. This ETF unfortunately regained its footing in the days following, although we we were still able to lock in a small 1.35% gain for the week.

Trade #2 Short IBB: Up 0.4%

IBB inched lower on Monday morning, setting the scene for bearish pressures to develop. Our short position was well timed seeing as how selling pressures struck hard on Tuesday, sinking IBB as low as $115.83 a share. Nonetheless, this ETF is quite resilient and was able to resume its longer-term uptrend without breaking a sweat in the days following. IBB regained much of its lost ground, although our short position still turned in a minimal 0.4% gain on the week.

Trade #3 Long IWM: Down 1.9%

This long recommendation quickly turned sour as bearish forces prevailed in the first half of the week. IWM hit our stop-loss on Tuesday as profit taking pressures sank shares below the $78.50 mark. We stuck to our rules and incurred a 1.9% loss on the week. This recommendation was frustrating seeing as how IWM was able to quickly regain lost ground in the days following although Tuesday’s price action had forced us out of our position.

ETFdb Portfolios

Retirement ETFdb Portfolios

Despite positive developments from the Euro zone’s Greek debt swap negotiations and encouraging U.S. jobs growth data, markets struggled to fully recuperate from Tuesday’s sell off. All of our retirement ETFdb Portfolios were in the red this week, with last week’s leader, the Aggressive ETFdb portfolio, falling to the bottom of the barrel from a performance perspective [see All Portfolio Returns].

ETFdb Portfolio Weekly Return
Low Volatility -0.12%
Ready To Retire -0.29%
5 Years Til Retirement -0.48%
10 Years Til Retirement -0.62%
Moderate -0.65%
20 Years Til Retirement -0.73%
Cheapskate -0.84%
30 Years Til Retirement -0.91%
Aggressive -1.00%

Regional ETFdb Portfolios

Tuesday’s sell-off pushed investors away from “riskier” asset classes, namely away from foreign equity markets. Not surprisingly, the portfolios with high Euro zone and emerging markets exposure were the worst performers of the week. Coming in at the bottom of the list were our Easy-As-ABC, Euro Free Europe, and BRIC-or-Bust ETFdb Portfolios. Likewise, our Ex-Europe portfolio held its ground best amidst the turmoil.

ETFdb Portfolio Weekly Return
Ex-Europe -0.77%
Africa-Centric -0.87%
Global Titans -0.87%
Emerging & Frontier Markets -0.95%
Ex-U.S. -0.97%
LatAm-Centric -1.16%
Asia-Centric -1.29%
Easy-As-ABC -1.65%
Euro Free Europe -1.71%
BRIC-or-Bust -2.32%

Themed ETFdb Portfolios

All of our themed portfolios posted negative weekly performances; the Better-Than-AGG Total Bond Market portfolio’s decline was relatively small, slipping only 0.14% as compared to some of our other portfolios that lost more than 2.0%. Our GLD-Free Gold Bug portfolio remains in last place thanks to the nasty sell-off in the gold futures market last week.

ETFdb Portfolio Weekly Return
Better-Than-AGG Total Bond Market -0.14%
Alpha Seeker Portfolio 2.0 -0.42%
Actively Managed -0.46%
Ben Graham 50/50 -0.53%
Simple (But Effective) Safe Haven -0.57%
The Sky Is Falling -0.57%
High Yield -0.62%
Socially Responsible -0.63%
AlphaDEX -0.70%
Greedy When Others Are Fearful -0.72%
Financials Free -0.73%
High Tech -0.75%
Small Cap -0.75%
2012 ETFdb Portfolio -0.79%
High Tax Bracket -0.84%
Cheapskate Hedge Fund -0.87%
Kitchen Sink -0.91%
Equal Weight -1.03%
Baby Boomers -1.11%
RAFI -1.24%
Black Swan Hyperinflation -1.78%
Futures Free Commodity -1.90%
Commodity Guru -1.92%
Energy Bull -2.16%
GLD-Free Gold Bug -2.88%

Disclosure: No positions at time of writing.