Euphoria Simmers After Mixed Data

by on March 31, 2012 | ETFs Mentioned:

Equity markets oscillated between minor gains and losses throughout most of the week as profit taking pressures were abundant after investors digested a number of mixed economic data releases. Investors were frustrated with reports from the housing market which showed that the real estate market recovery is still sluggish at best. Consumer-confidence and durable goods orders data also missed analyst expectations. Nonetheless, investors on Wall Street ended the week on a positive note after consumer sentiment and spending data both surpassed analyst expectations on Friday.

Actionable ETF Trade Ideas

Last Week’s Actionable ETF Ideas
Ticker Position Performance
GXC

Long

-1.3%
EMB

Long

+0.1%
DBA

Long

-1.4%

Our picks from Monday’s Insider posted a disappointing performance as our equity and commodity positions turned sour, leaving only our fixed income trade in green territory. 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 Long GXC: Down 1.3%

This recommendation got off to an encouraging start on Monday morning as GXC climbed higher right from the opening bell. Positive momentum slowed down a bit on Tuesday as the price tapered off just below the $70 level. Broad-based selling pressures swept over Wall Street on Wednesday, inevitably dragging down this ETF. GXC tumbled below our stop-loss at $68 a share; we stuck to our rules and sold our position, ultimately incurring a minor 1.3% loss on the week.

Trade #2 Long EMB: Up 0.1%

The recommendation got off to a weak start as EMB drifted sideways in the first two trading days. Weakness in equities bolstered this ETF higher on Tuesday morning, although it failed to hold onto gains as profit-taking pressures prevailed. This ETF sank even lower on Thursday, hitting a weekly-low at $112.28 a share. Despite a lackluster performance throughout the week, EMB finished strong on Friday, leaving us with a small 0.1% gain on the week.

Trade #3 Long DBA: Down 1.4%

This long position started off the week on a positive note, managing to settle above last Friday’s closing price. DBA extended its gains into Tuesday, however, selling pressures took hold of this fund mid-day and its gains from the previous session were quickly erased. Negative momentum accelerated on Wednesday and the price tumbled lower towards our stop-loss at $28 a share. The bears returned on Thursday as well and DBA dipped below support, triggering our stop-loss and incurring a 1.4% loss on the week.

ETFdb Portfolios

Retirement ETFdb Portfolios

Weakness in equity markets sparked a wave of uncertainty which prompted many investors to jump ship from stocks and into bonds for the week. Resurfacing worries about the economic recovery at home paved the way higher for our fixed income-heavy retirement portfolio; not surprisingly, our most conservative Ready To Retire portfolio came in first place while our Low Volatility portfolio turned in the worst performance, although still positive on the week [see All Portfolio Returns].

ETFdb Portfolio Weekly Return
Ready To Retire 0.63%
Moderate 0.60%
10 Years Til Retirement 0.54%
30 Years Til Retirement 0.45%
5 Years Til Retirement 0.44%
20 Years Til Retirement 0.43%
Cheapskate 0.37%
Aggressive 0.32%
Low Volatility 0.02%

Regional ETFdb Portfolios

Foreign equity markets broadly turned lower as investors scaled back their risk appetite, opting for safer asset classes this week in lieu of chasing after potentially lucrative returns overseas. The Ex-Europe portfolio came out on top while the BRIC-or-Bust portfolio was the biggest loser from a weekly performance perspective.

ETFdb Portfolio Weekly Return
Ex-Europe 0.70%
Global Titans 0.50%
Easy-As-ABC 0.34%
Asia-Centric -0.01%
Euro Free Europe -0.05%
Ex-U.S. -0.05%
Africa-Centric -0.13%
Emerging & Frontier Markets -0.18%
LatAm-Centric -0.19%
BRIC-or-Bust -0.85%

Themed ETFdb Portfolios

An overwhelming majority of our themed portfolios ended the week in green territory amidst the back-and-forth price action prevalent across equity markets. Our healthcare-centric Baby Boomers portfolio took the lead, gaining well over a full point on the week, while our High Tech portfolio trailed closely behind. Crude oil prices took a nosedive lower this week, dragging down our Energy Bull portfolio to the bottom of the barrel.

ETFdb Portfolio Weekly Return
Baby Boomers 1.48%
High Tech 0.96%
GLD-Free Gold Bug  0.95%
Equal Weight 0.66%
Simple (But Effective) Safe Haven 0.58%
High Yield 0.55%
Socially Responsible 0.54%
Actively-Managed 0.47%
Futures Free Commodity 0.46%
Better-Than-AGG Total Bond Market 0.42%
High Tax Bracket 0.40%
AlphaDEX 0.38%
Financials Free 0.33%
RAFI 0.32%
Small Cap 0.28%
Alpha Seeker 2.0 0.25%
Greedy When Others Are Fearful 0.21%
Kitchen Sink 0.17%
Ben Graham 50/50 0.15%
King Dollar -0.05%
Cheapskate Hedge Fund -0.15%
Commodity Guru -0.29%
Black Swan Hyperinflation -0.30%
The Sky Is Falling -0.52%
2012 ETFdb Portfolio -0.53%
Energy Bull -1.02%

Disclosure: No positions at time of writing.