Bulls Charge Ahead

by on February 18, 2012 | ETFs Mentioned:

Equity markets ended up in green territory although bumpy trading throughout the week kept investors’ confidence in check. Lingering uncertainties stemming from the debt burdened Euro zone coupled with encouraging economic data releases on the home front paved the way for volatile trading across asset classes. Noteworthy developments included progress in the Greek bailout negotiations along with better-than-expected home builders’ index and a drop-off in jobless claims at home. Gold ended the week fairly flat near $1,720 an ounce amidst the gradually improving economic landscape.

Actionable ETF Trade Ideas

Last Week’s Actionable ETF Ideas
Ticker Position Performance
PIO

Short


-2.6%
IXP

Long

+0.8%
LQD

Short

+0.4%

Our picks from Monday’s Insider posted a respectable performance this week, with two of our three trades generating a nice profit. 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 PIO: Down 2.6%

Last Friday’s heavy selling action and close below its 200-day moving average had prompted us to take a speculative short position in PIO, essentially betting on a near-term top. Our technical analysis lead us astray however in this instance, seeing as how PIO held its ground on Monday and Tuesday, before proceeding to surge higher on Wednesday, and continue on its mini bull-run through the closing bell on Friday. This trade turned sour on Friday after PIO hit our stop-loss at $18.10 a share, leaving us with a 2.6% loss on the week.

Trade #2 Long IXP: Up 0.8%

This pick got off to a robust start on Monday, opening well above Friday’s close and extending gains throughout the entire trading session. However, gains were quickly erased on Tuesday as IXP sank back down near $55.20 a share, retesting support around this level on Wednesday as well. Widespread buying euphoria on Thursday bolstered this ETF higher back to Monday’s high point. IXP continued its uptrend on Friday, touching a high of $56.39 a share, and leaving us with a 0.8% gain on the week.

Trade #3 Short LQD: Up 0.4%

We were a bit worried with this recommendation early in the week seeing as how it drifted higher on Monday and Tuesday. LQD missed our stop-loss by just a few pennies on Wednesday morning right before selling pressures accelerated. Profit taking on Thursday and Friday helped to generate a small 0.4% gain on the week.

ETFdb Portfolios

Retirement ETFdb Portfolios

Despite up-down price action across equity and bond markets throughout the week, all of our retirement portfolios ended up in positive territory. Encouraging data on the home front continues to bolster equity indexes higher as investors gain more and more confidence in the health of the economic recovery. Our 20 Years Til Retirement portfolio took the lead, although not by much, while our Cheapskate portfolio came in last place from a weekly performance perspective [see All Portfolio Returns]. 

ETFdb Portfolio Weekly Return
20 Years Til Retirement 0.41%
30 Years Til Retirement 0.38%
10 Years Til Retirement 0.32%
Aggressive 0.30%
5 Years Til Retirement 0.29%
Ready To Retire 0.25%
Moderate 0.23%
Low Volatility 0.15%
Cheapskate 0.11%

Regional ETFdb Portfolios

Our regional portfolios held their ground nicely as a whole, although several slipped into negative territory as selling pressures towards the end of the trading week prompted many investors to take profits. Our Asia-Centric portfolio sits at the top of the list for the week, while our Easy-As-ABC has turned in the worst performance from the regional group. 

ETFdb Portfolio Weekly Return
Asia-Centric 0.65%
BRIC-Or-Bust 0.48%
Global Titans 0.32%
Ex-Europe 0.27%
LatAm-Centric 0.26%
Euro Free Europe 0.22%
Emerging & Frontier Markets 0.09%
Africa-Centric -0.13%
Ex-U.S. -0.14%
Easy-As-ABC -0.41%

Themed ETFdb Portfolios

Equity market euphoria spread far and wide this week, and our Energy Bull portfolio was able to capture a respectable gain, while our High Tech portfolio trailed closely behind. It was a tough week for commodities indeed; the three worst performing portfolios on the week all have heavy allocations to the commodities space. 

ETFdb Portfolio Weekly Return
Energy Bull 1.05%
High Tech 0.91%
The Sky Is Falling 0.72%
High-Tax Bracket 0.70%
Cheapskate Hedge Fund 0.39%
High Yield 0.28%
Ben Graham 50/50 0.27%
Actively Managed 0.26%
Socially Responsible 0.22%
Small Cap 0.17%
Kitchen Sink 0.15%
Simple (But Effective) Safe Haven 0.14%
RAFI 0.08%
Alpha Seeker 2.0 0.06%
Better-Than-AGG Total Bond Market 0.05%
Financials Free -0.02%
Black Swan Hyperinflation -0.18%
AlphaDEX -0.21%
2012 -0.37%
Equal Weight -0.42%
GLD-Free Gold Bug -0.45%
Commodity Guru -0.55%
Futures Free Commodity  -0.81%

Disclosure: No positions at time of writing.