Flat Finish As Fiscal Woes Loom

by on December 15, 2012 | ETFs Mentioned:

Equity markets started off on a strong note as optimism surrounding the “fiscal cliff” carried major indexes higher. After enjoying a solid six day “win streak” on Wall Street, the bulls gradually made way for profit-taking pressures as the latest FOMC statement spooked many; Fed Chairman Bernanke put pressure on Congress by noting that the Fed does not have the necessary tools to offset the “fiscal cliff.” While gridlock persisted in Washington D.C., encouraging economic data, including better-than-expected weekly jobless claims and positive retail sales, went largely unnoticed [see Free 7 Simple & Cheap All- ETF Model Portfolios].

Actionable ETF Trade Ideas

Our picks from Monday’s Insider posted disappointing performance results as selling pressures towards the end of the week leeched away most of our gains. 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 50 all-ETF model portfolios].

Last Week’s Actionable ETF Ideas
Ticker Position Week Performance
IXP

Long

+0.8%
EWJ

Short

-0.4%
IWM

Long

No Change

Trade #1 Long IXP: Up 0.8%

This recommendation kicked off the week on a very encouraging note; IXP climbed higher right out of the gates on Monday morning through Wednesday, when it settled just shy of the $59 level. Thursday and Friday, however, turned out to be brutal for this pick as profit-taking pressures swept in and most of the gains accumulated earlier in the week evaporated. Nonetheless, IXP managed to clinch a minor gain on the week despite a lackluster finish.

Trade #2 Short EWJ: Down 0.4%

Our bearish suspicions didn’t exactly pan out as expected, with EWJ managing to hold its ground just shy of resistance. While our prediction that EWJ would fail to summit $9.40 a share proved true, our expectations of a correction failed to materialize. Unfortunately, EWJ drifted sideways all week, ultimately ending a few pennies higher than Monday’s opening price.

Trade #3 Long IWM: No Change 

Similar to IXP, this recommendation got off to an encouraging start only to give in to profit-taking pressures as the week drew to a close. This ETF kicked off the week just above $82 a share and climbed almost to the $84 level by Wednesday; broad-based selling pressures were relentless, however, and this ETF ended up right where it started the week as Friday’s closing bell rang.

ETFdb Portfolios

Retirement ETFdb Portfolios

Our Aggressive Portfolio took the lead this week as “risk on” trading in the first half of the week bolstered this equity-heavy portfolio higher; not surprisingly, our bond-heavy Ready To Retire Portfolio came in at the bottom of the barrel.

ETFdb Portfolio 1 Week 4 Week 13 Week YTD 1 Year 3 Year 5 Year
5 Years Til Retirement Portfolio 0.28% -0.10% 1.20% 6.25% 10.49% 40.43% 64.18%
10 Years Til Retirement Portfolio 0.11% -0.48% 0.79% 6.78% 11.00% 44.83% 69.72%
20 Years Til Retirement Portfolio 0.21% -0.49% 0.77% 7.74% 12.69% 51.60% 78.92%
30 Years Til Retirement Portfolio 0.11% -0.60% 0.68% 7.56% 12.40% 55.88% 85.44%
Aggressive Portfolio -0.21% -0.71% -0.26% 5.99% 9.18% 41.21% n/a
Cheapskate Portfolio 0.25% 0.59% 2.87% 7.34% 12.43% n/a n/a
Low Volatility Portfolio 0.08% -0.87% 0.38% 4.57% 5.51% n/a n/a
Moderate Portfolio 0.06% -0.82% 0.08% 5.82% 8.96% 36.59% n/a
Ready To Retire ETFdb Portfolio 0.09% -0.78% 0.49% 5.80% 8.02% 28.06% 51.23%
As Of 09-19-2014
Regional ETFdb Portfolios

Profit-taking pressures proved to be much harsher on the homefront than elsewhere around the globe as our regional portfolios posted largely positive performances. Our Easy-As-ABC Portfolio took the lead with our Africa-Centric Portfolio trailing closely behind, while the Asia-Centric Portfolio turned in the worst performance on the week.

ETFdb Portfolio 1 Week 4 Week 13 Week YTD 1 Year 3 Year 5 Year
Africa-Centric Portfolio 0.04% -1.41% 0.72% 8.77% 14.00% 25.91% n/a
Asia-Centric ETFdb Portfolio -0.91% -2.06% 0.85% 5.72% 6.37% 19.34% n/a
BRIC-or-Bust ETFdb Portfolio -1.58% -1.83% 0.73% 5.40% 6.16% -1.74% n/a
Easy-As-ABC ETFdb Portfolio -1.35% -2.82% -1.31% 0.85% -6.86% n/a n/a
Emerging & Frontier Markets ETFdb Portfolio -0.63% -1.51% 0.24% 6.10% 3.84% 11.00% n/a
Euro Free Europe Portfolio 0.13% -1.02% -3.90% -2.26% 0.02% 30.20% n/a
Ex-Europe ETFdb Portfolio 0.11% -1.00% 0.75% 6.85% 9.72% 34.33% 56.02%
Ex-U.S. Portfolio -0.60% -2.09% -1.50% 3.10% 5.62% 27.36% 32.20%
Global Titans ETFdb Portfolio 0.08% -0.40% -1.69% 2.47% 6.32% 39.79% n/a
LatAm Centric ETFdb Portfolio -1.13% -2.17% -1.38% 0.41% -4.54% n/a n/a
As Of 09-19-2014
Themed ETFdb Portfolios

Among our themed strategies, the commodity-centric Mining Boom Portfolio turned in the best performance followed by our Pure Value ETFdb Portfolio. On the other end of the performance spectrum, our defensive Sky Is Falling Portfolio came in last place for the week.

ETFdb Portfolio 1 Week 4 Week 13 Week YTD 1 Year 3 Year 5 Year
Actively-Managed ETF Portfolio -0.29% -0.37% 0.90% 3.94% 6.50% n/a n/a
2012 ETFdb Portfolio 0.15% -0.67% -0.69% 7.19% 12.57% n/a n/a
AlphaDEX ETFdb Portfolio -0.46% -1.49% -1.21% 3.15% 6.67% 34.10% n/a
Alpha Seeker Portfolio 2.0 -0.29% -0.35% 1.88% 6.83% 10.96% 39.16% n/a
Baby Boomers ETFdb Portfolio 0.42% 1.01% 3.31% 10.59% 21.32% 90.62% n/a
Ben Graham 50/50 Portfolio 0.02% -0.61% 0.49% 5.22% 8.14% n/a n/a
Better-Than-AGG Total Bond Market ETFdb Portfolio 0.06% -0.96% -0.23% 3.98% 4.09% 8.23% n/a
Black Swan Hyperinflation Portfolio -0.97% -4.08% -7.34% -0.87% -5.13% -12.98% 12.43%
Commodity Guru ETFdb Portfolio -0.49% -2.57% -4.66% 0.02% -0.51% 1.93% n/a
Cheapskate Hedge Fund ETFdb Portfolio -0.02% 0.76% 1.30% 2.46% 2.52% 0.21% n/a
Energy Bull ETFdb Portfolio 0.02% -2.13% -4.74% 4.00% 6.87% 26.63% n/a
Equal Weight ETFdb Portfolio -0.04% -0.44% 1.42% 5.99% 9.35% n/a n/a
Financials Free ETFdb Portfolio 0.48% -0.58% -1.16% 6.13% 10.61% 37.76% 65.38%
Futures Free Commodity ETFdb Portfolio -0.88% -3.89% -5.26% -1.15% -4.23% -14.38% n/a
GLD-Free Gold Bug ETFdb Portfolio -2.23% -8.11% -9.55% 7.20% -11.45% -43.13% n/a
Greedy When Others Are Fearful ETFdb Portfolio 0.52% 1.13% 2.92% 8.74% n/a n/a n/a
High-Tax Bracket ETF Portfolio 0.27% 0.24% 0.97% 6.57% 9.87% 36.77% 58.07%
High Tech ETFdb Portfolio 0.61% 1.65% 7.73% 12.74% 19.78% n/a n/a
High Yield ETFdb Portfolio 0.17% -1.15% -0.28% 6.78% 10.38% 47.47% 74.30%
King Dollar ETFdb Portfolio 0.48% 0.53% 2.40% 6.64% 8.27% 29.83% n/a
Kitchen Sink ETFdb Portfolio -0.43% -1.20% -1.60% 2.82% 5.86% 29.29% n/a
Monthly Dividend ETFdb Portfolio -0.29% -1.18% -0.46% 7.11% 11.08% 39.95% n/a
Pure Growth ETFdb Portfolio -0.10% -0.68% -0.19% 5.05% 8.89% n/a n/a
Pure Value ETFdb Portfolio -0.18% -0.78% -1.01% 5.98% 11.59% n/a n/a
RAFI ETFdb Portfolio -0.84% -1.43% -1.61% 4.01% 9.61% 53.15% 62.19%
Simple (But Effective) Safe Haven ETFdb Portfolio -0.14% -1.78% -3.90% 4.53% 3.55% 19.13% 47.85%
Small Cap ETFdb Portfolio -0.77% -1.57% -2.12% 2.63% 6.57% 37.54% n/a
The Sky Is Falling Portfolio -0.70% -1.65% -2.89% -1.27% -2.84% 1.69% 22.38%
Socially Responsible ETFdb Portfolio 0.29% -0.89% 1.38% 4.44% 8.86% n/a n/a
Risk On ETFdb Portfolio -0.09% -0.86% -0.86% 7.67% 9.95% n/a n/a
Consumer Centric ETFdb Portfolio -0.77% -1.51% -1.94% 2.20% 6.11% n/a n/a
Agri-Bull ETFdb Portfolio -0.71% -1.39% -6.34% 0.23% 1.31% 9.38% n/a
8% Yield ETFdb Portfolio -0.87% -2.28% -2.69% 5.33% 8.06% n/a n/a
Mining Boom ETFdb Portfolio -2.23% -6.70% -5.94% 1.93% -5.06% n/a n/a
2013 ETFdb Portfolio 0.41% -0.47% 0.16% 7.72% 8.65% 52.46% n/a
As Of 09-19-2014

Disclosure: No positions at time of writing.