Stocks In Free Fall

by on May 19, 2012 | ETFs Mentioned:

Equity markets were rattled back-and-forth as Euro zone debt drama swept over Wall Street for another week. Volatility levels climbed higher across asset classes as profit taking pressures and bargain buying created a trading frenzy, although major stock indexes did end the week lower in red territory. Investors got no relief on the home front as the latest Fed minutes revealed that the domestic recovery is still sluggish at best [see also 3 Trading Tips You Are Missing]. 

Actionable ETF Trade Ideas

Last Week’s Actionable ETF Ideas
Ticker Position Performance
MDY

Long

-1.6%
FXC

Long

-0.7%
KXI

Long

-0.8%

Our picks from Monday’s Insider posted a frustrating performance during a volatile week for equity markets around the globe. 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 MDY: Down 1.6%

This ETF got off to a weak start as shares drifted sideways in the first two days of the week, only to inch even lower on Wednesday. The rampant sell-off on Thursday dragged down this ETF alongside virtually every other corner of the equity market. We stuck to our rules and cut our losses at $171 a share, which actually ended up saving us from incurring a much larger loss seeing as how MDY traded as low as $164.59 a share on Friday. 

Trade #2 Long FXC: Down 0.7%

This ETF got off to a worrisome start as selling pressures on Tuesday dragged it down near our outlined support level at $98.50 a share. The U.S. dollar rallied on Wednesday as Euro zone debt woes intensified, putting pressure on major currencies, and especially dragging down the Canadian dollar; as such, we stuck to our outlined stop-loss and cut our losses at $98.50 a share, which once again saved us from incurring an even larger loss seeing a how this ETF traded as low as $97.27 a share on Friday. 

Trade #3 Long KXI: Down 0.8% 

This defensive sector ETF did not provide much of a shield from all of the volatility, leading to another recommendation in red territory for the week. KXI drifted sideways in the first half of the week, although selling pressures on Thursday overpowered the bulls and sank this ETF below our outlined stop-loss. Once again, we stuck to our rules and cut our losses at $69 a share; KXI traded as low as $68.09 a share on Friday. 

ETFdb Portfolios

Retirement ETFdb Portfolios

Rampant selling pressures across equity markets dragged our retirement themed portfolio into red territory for the week. Even our bond-heavy Ready To Retire portfolio could’t hold its ground as profit taking pressures intensified throughout the week. Not surprisingly, our worst performer was the equity-heavy Aggressive portfolio [see All Portfolio Returns].

ETFdb Portfolio Weekly Return
Ready To Retire -1.56%
Low Volatility -2.23%
5 Years Til Retirement -2.42%
Moderate -2.95%
10 Years Til Retirement -3.20%
Cheapskate -3.25%
20 Years Til Retirement -4.02%
30 Years Til Retirement -4.54%
Aggressive -5.04%

Regional ETFdb Portfolios

Our regional portfolios struggled to hold their ground amidst the flurry of trading activity around the globe. Euro zone debt drama undoubtedly set the tone for profit taking throughout the week. Our Ex-Europe portfolio pulled ahead thanks to its creative strategy, while our LatAm-Centric portfolio was the worst performer for the week. 

ETFdb Portfolio Weekly Return
Ex-Europe -3.18%
Global Titans -3.41%
Asia-Centric -3.89%
Ex-U.S. -4.84%
Africa-Centric -4.99%
Emerging & Frontier Markets -5.22%
BRIC-or-Bust -5.84%
Easy-As-ABC -6.13%
Euro Free Europe -6.30%
LatAm-Centric -6.76%

Themed ETFdb Portfolios

Our themed portfolio all ended the week on a sour note, except for our Sky Is Falling portfolio, which managed to clinch a minor gain thanks to its unique investment approach. Selling pressures in equity and commodity markets dragged down virtually every asset class, with U.S. Treasuries being the sole victor in an otherwise absolutely dismal week on Wall Street.

ETFdb Portfolio Weekly Return
The Sky Is Falling  0.97%
Better-Than-AGG Total Bond Market -0.60%
Cheapskate -0.64%
King Dollar -1.89%
Ben Graham 50/50 -2.16%
Simple (But Effective) Safe Haven -2.28%
Actively-Managed -2.35%
High Yield -2.77%
Socially Responsible  -2.86%
Kitchen Sink  -2.92%
High-Tax Bracket -2.95%
Financials Free -3.05%
Baby Boomers -3.09%
Equal Weight -3.13%
Alpha Seeker 2.0 -3.25%
Black Swan Hyperinflation -3.37%
Pure Growth -3.75%
Commodity Guru -3.82%
Pure Value -3.87%
Small Cap -3.93%
High Tech -3.97%
Greedy When Other Are Fearful -4.16%
GLD-Free Gold Bug -4.31%
AlphaDEX -4.49%
2012 ETFdb Portfolio -5.20%
Futures Free Commodity -5.20%
RAFI -5.49%
Energy Bull -5.94%

Disclosure: No positions at time of writing.