Winning Trades In A Choppy Week

by on August 25, 2012 | ETFs Mentioned:

Major equity indexes drifted lower throughout the week as resurfacing worries over Europe brought back the bear on Wall Street. Nonetheless, U.S. markets managed to end the week on a very positive note as better-than-expected durable goods orders data bolstered equity benchmarks higher. FOMC minutes surprisingly rattled the bulls despite talks of more stimulus to come; this allowed for our defensive-minded recommendations to prosper, leaving us with a solid gain during a mixed week [see also How To Pick The Right ETF Every Time].

Actionable ETF Trade Ideas

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

Long

+0.2%
LQD

Long

+1.4%
BND

Long

+0.6%

Our picks from Monday’s Insider performed very well, with all of our recommendations generating a nice profit during an otherwise choppy week on Wall Street. 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 45 all-ETF model portfolios].

Trade #1 Long EZA: Up 0.2%

This was by far our most frustration recommendation on the week. EZA got off to a very encouraging start as shares held above $65.50 on Monday and went onto climb past the $67 level on Tuesday. Selling pressures began creeping in Wednesday however, and since then, EZA traded lower into the closing bell Friday; shares closed just above Monday’s opening price, leaving us with a minimal gain on the week. 

Trade #2 Long LQD: Up 1.4%

This recommendation was spot-on; LQD held above support at $118 a share on Monday as anticipated and resumed its uptrend in the following days. This ETF climbed higher throughout the week as worries over Europe promoted profit-taking, which in turn encouraged many to jump ship back to the bond market. LQD approached our target at $120 a share without hesitation, although it ultimately fell short by a few pennies; nonetheless, this trade turned in a solid profit on the week. 

Trade #3 Long BND: Up 0.6%

This fundamentally-defensive recommendation also played out as anticipated. BND held above $84 a share on Monday and went onto climb higher throughout the week, pumping the breaks a bit on Friday as equity market euphoria took its toll on bonds. BND missed our price target just barely, although it still managed to clinch a respectable gain on the week. 

ETFdb Portfolios

Retirement ETFdb Portfolios

Our Cheapskate ETFdb Portfolio managed to finish off the week ahead of the pack in positive territory while our equity-heavy 30 Years Til Retirement came in last place from a performance perspective. 

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Regional ETFdb Portfolios

Our regional portfolios posted lackluster returns across the board as “risk-off” trading was a dominant theme. From a year-to-date performance perspective, our Africa-Centric ETFdb Portfolio continues to lead the way with double-digit gains, up nearly 12% on the year. 
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Themed ETFdb Portfolios

Our Consumer-Centric ETFdb Portfolio, a new addition to the lineup, endured a lackluster debut, ultimately ending the week fairly flat. Our GLD-Free Gold Bug ETFdb Portfolio took the lead by a wide margin, surging 4% on the week, while most of our other themed strategies enjoyed minor gains or ended up in shallow red territory. 

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Disclosure: No positions at time of writing.