And just like that domestic equities have recovered their post-election losses. Following Obama’s re-election investors and media headlines focused their attention on the lingering “fiscal cliff”, sparked a rapid sell-off. A little over a month has passed and politicians are still gridlocked in Washington D.C., and while the “fiscal cliff” is that much closer, stocks have managed to discount the lack of a fundamental improvement and rebound higher. Improving employment data and solid GDP have certainly served as positive catalysts over the past month, however, it’s fair to say that optimism has largely driven markets higher on the hopes that our policymakers will strike a deal before we drive off the cliff [see Free 7 Simple & Cheap All-ETF Portfolios].
Below, we highlight how the ETFdb Analyst Picks have been performing, noting any important fundamental catalysts while also keeping an eye on key technical levels for our recommendations. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques:
|Utilities Select Sector SPDR|
Overblown “fiscal cliff” woes sunk this ETF far below its 200-day moving average, however, buying pressures were quick to resurface given the fundamentally defensive nature of utilities stocks. Although this recommendation is still in red territory, XLU has staged an impressive rebound off its lows of $33.85 a share on 11/15/2012; furthermore, this ETF appears to be climbing higher within a tight, upward slopping channel, which showcases the sheer interest among bargain buyers.
Pro Membership Required to Continue Reading
- Access to 50+ All-ETF model portfolios. Whether you're a long-term, buy-and-hold investor or a more active trader looking to establish a tactical position, our collection of ETFdb Portfolios has something for everyone.
- ETFdb Realtime Ratings show you exactly where each fund stacks up next to the competition. Get objective, in-depth, custom research on every ETF.
- Pro members have Unlimited Excel Download capabilities across the entire database; users can easily download more than 200 data filled paged and also export results to Microsoft Excel from every tool.
- Get Actionable ETF Investment Ideas every week with access to ETF Insider, the 2x weekly newsletter that combines technical and fundamental ETF analysis to identify compelling opportunities.
- ETFdb Analyst Picks offer investment recommendations suited for longer-term traders; each Analyst Pick includes a fundamental rationale as well a suggested stop-loss and price target.
Disclosure: No positions at time of writing.
ETF Database is not an investment advisor, and any content published by ETF Database does not constitute individual investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities. From time to time, issuers of exchange-traded products mentioned herein may place paid advertisements with ETF Database. All content on ETF Database is produced independently of any advertising relationships. Read the full disclaimer here.