Broad Correction In Sight

by on February 23, 2013 | ETFs Mentioned:

The bears finally made an appearance on Wall Street, although it was fairly short-lived. Profit taking pressures permeated the marketplace on Wednesday as investors fretted over worse-than-expected housing starts data while mixed FOMC minutes further added to the cloud of uncertainty for the day. Nonetheless, the bulls returned with great vigor on Friday and regained some of the losses on the week [see Free 7 Simple & Cheap All- ETF Model Portfolios].

Actionable ETF Trade Ideas

Our picks from Monday’s Insider posted lackluster performance results as the mid-week sell off prompted us to cut losses on two of our recommendations. 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
EMB

Long

Down Arrow -0.7%
EWW

Long

Down Arrow -1.3%
HILO

Long

Down Arrow -1.2%

Trade #1 Long EMB: Down 0.7%

This fund appeared to have established support above its 200-day moving average; however, our bullish suspicions proved false after EMB failed to hold above $119 a share on Wednesday. Selling pressures persisted into Thursday and Friday as buyers were hesitant to return to the emerging market bond space, leaving us with a small loss on the week.

Trade #2 Long EWW: Down 1.3%

This pick got off to an encouraging start as EWW was on track to resume its uptrend; however, this ETF could not escape the broad-based selling pressures on Wednesday and it sank lower alongside major equity indexes. Profit taking spilled over into Thursday, sinking EWW past our stop-loss at $71 a share and leaving us with a frustrating loss on the week.

Trade #3 Long HILO: Down 1.2%

This recommendation failed to rebound off support as anticipated. HILO kicked off the week with a rally, but selling pressures on Wednesday leeched away all of the gains. Profit taking pressures stuck around and our stop-loss was triggered the following day after this ETF sank below $19.50 a share.

ETFdb Portfolios

Retirement ETFdb Portfolios

Our Aggressive Portfolio was the worst performing strategy of the week as its equity-heavy composition worked against it at the first sign of profit taking on Wall Street; on the flip side, our Low Volatility Portfolio proved to be the most resilient strategy.

ETFdb Portfolio 1 Week 4 Week 13 Week YTD 1 Year 3 Year 5 Year
5 Years Til Retirement Portfolio 1.72% -0.11% 1.80% 8.21% 9.64% 42.86% 63.73%
10 Years Til Retirement Portfolio 1.77% -0.79% 1.09% 8.21% 10.11% 47.69% 68.51%
20 Years Til Retirement Portfolio 2.22% -0.67% 1.16% 9.27% 12.19% 55.30% 77.78%
30 Years Til Retirement Portfolio 2.51% -1.06% 0.95% 8.69% 11.19% 59.63% 84.09%
Aggressive Portfolio 2.18% -3.55% -3.86% 2.14% 4.48% 40.31% n/a
Cheapskate Portfolio 0.82% 0.05% 2.24% 5.73% 11.13% n/a n/a
Low Volatility Portfolio 0.97% -1.58% -0.30% 4.22% 5.73% 26.11% n/a
Moderate Portfolio 1.67% -0.43% 1.02% 6.96% 8.58% 38.97% 58.46%
Ready To Retire ETFdb Portfolio 0.89% -0.03% 1.99% 8.11% 9.01% 30.22% 51.12%
As Of 12-19-2014
Regional ETFdb Portfolios

Profit-taking pressures spilled over into virtually every corner of the global equity market, dragging down all of our regional strategies. From a year-to-date performance perspective, our Euro Free Europe Portfolio is leading the way higher while our Africa-Centric Portfolio sits at the bottom of the barrel.

ETFdb Portfolio 1 Week 4 Week 13 Week YTD 1 Year 3 Year 5 Year
Africa-Centric Portfolio 0.22% -10.15% -13.64% -5.70% -4.04% 17.50% n/a
Asia-Centric ETFdb Portfolio 0.23% -2.91% -3.51% 2.05% 4.68% 24.31% n/a
BRIC-or-Bust ETFdb Portfolio -0.03% -10.36% -12.74% -7.33% -5.83% -2.78% n/a
Easy-As-ABC ETFdb Portfolio -0.18% -4.69% -5.76% -6.32% -10.04% n/a n/a
Emerging & Frontier Markets ETFdb Portfolio 0.60% -6.97% -9.22% -3.64% -2.23% 8.75% n/a
Euro Free Europe Portfolio 1.32% -7.46% -11.18% -12.38% -9.48% 23.63% n/a
Ex-Europe ETFdb Portfolio 1.76% -1.67% -0.99% 5.87% 7.46% 35.87% 53.04%
Ex-U.S. Portfolio 1.23% -3.04% -4.74% -1.78% 0.54% 29.00% 26.05%
Global Titans ETFdb Portfolio 0.22% -0.58% -1.82% 1.12% 3.10% 44.05% n/a
LatAm Centric ETFdb Portfolio 0.45% -8.24% -14.33% -14.44% -12.91% n/a n/a
As Of 12-19-2014
Themed ETFdb Portfolios

Gold was hit hard with profit taking pressures this week, and as expected, our GLD-Free Gold Bug Portfolio turned in a dismal performance; weakness in the precious metals front also hurt mining equities, which in turn dragged our Mining Boom Portfolio into negative territory. From a year-to-date performance perspective, our Risk On Portfolio remains the best performer while the GLD-Free Gold Bug Portfolio sits at the very bottom of the barrel with double-digit losses.

ETFdb Portfolio 1 Week 4 Week 13 Week YTD 1 Year 3 Year 5 Year
Actively-Managed ETF Portfolio -0.12% -1.17% -2.17% 2.14% 3.39% n/a n/a
2012 ETFdb Portfolio 2.18% -5.28% -7.21% -0.60% 2.11% n/a n/a
AlphaDEX ETFdb Portfolio 1.93% -2.27% -3.28% -0.17% 1.94% 33.36% n/a
Alpha Seeker Portfolio 2.0 1.18% -0.09% 2.75% 8.96% 11.87% 45.38% n/a
Baby Boomers ETFdb Portfolio 1.90% 1.85% 6.36% 17.14% 22.64% 100.67% n/a
Ben Graham 50/50 Portfolio 0.67% -0.63% 0.39% 4.54% 6.74% n/a n/a
Better-Than-AGG Total Bond Market ETFdb Portfolio 0.24% -0.66% -0.59% 3.44% 3.41% 7.16% n/a
Black Swan Hyperinflation Portfolio 1.37% -5.88% -10.19% -10.96% -9.41% -14.24% -3.90%
Commodity Guru ETFdb Portfolio 1.05% -6.07% -8.06% -7.94% -6.73% 2.53% n/a
Cheapskate Hedge Fund ETFdb Portfolio 0.93% -0.23% -0.77% 1.89% 2.89% 1.63% n/a
Energy Bull ETFdb Portfolio 5.75% -10.34% -15.19% -11.92% -9.52% 10.00% n/a
Equal Weight ETFdb Portfolio 1.59% -0.03% 0.94% 5.67% 7.41% n/a n/a
Financials Free ETFdb Portfolio 1.59% -1.55% -1.44% 4.69% 6.49% 35.44% 58.07%
Futures Free Commodity ETFdb Portfolio 1.34% -5.89% -10.43% -11.40% -9.56% -14.34% n/a
GLD-Free Gold Bug ETFdb Portfolio -1.85% -4.92% -11.60% -4.02% -3.79% -38.40% n/a
Greedy When Others Are Fearful ETFdb Portfolio 1.21% 0.25% 0.84% 6.86% n/a n/a n/a
High-Tax Bracket ETF Portfolio 1.02% -0.73% -0.37% 6.23% 8.14% 39.93% 55.23%
High Tech ETFdb Portfolio 2.46% 2.97% 8.88% 16.37% 19.95% n/a n/a
High Yield ETFdb Portfolio 1.93% -0.94% 0.76% 7.82% 9.72% 46.34% 74.53%
King Dollar ETFdb Portfolio 1.41% -1.14% 0.94% 7.68% 8.69% 29.35% n/a
Kitchen Sink ETFdb Portfolio 1.40% -2.29% -2.93% 0.11% 1.70% 29.66% n/a
Monthly Dividend ETFdb Portfolio 1.90% -0.27% 1.04% 8.24% 9.91% 38.51% n/a
Pure Growth ETFdb Portfolio 1.74% -2.81% -3.73% 1.26% 3.03% n/a n/a
Pure Value ETFdb Portfolio 1.78% -2.53% -3.62% 2.30% 4.38% n/a n/a
RAFI ETFdb Portfolio 2.26% -3.11% -4.26% 0.14% 3.09% 52.09% 62.46%
Simple (But Effective) Safe Haven ETFdb Portfolio 0.12% -1.03% 0.27% 5.33% 6.87% 21.74% 43.39%
Small Cap ETFdb Portfolio 1.43% -1.58% -2.51% -0.08% 2.28% 40.02% n/a
The Sky Is Falling Portfolio -0.83% -0.83% -0.96% -2.42% -1.84% 1.00% 16.55%
Socially Responsible ETFdb Portfolio 1.06% -0.80% 1.24% 4.28% 7.84% n/a n/a
Risk On ETFdb Portfolio 0.90% -4.07% -6.28% -1.32% 0.24% n/a n/a
Consumer Centric ETFdb Portfolio -0.42% -2.18% -1.56% 0.97% 3.48% n/a n/a
Agri-Bull ETFdb Portfolio 1.03% -3.13% 0.23% 0.01% 1.59% 17.31% n/a
8% Yield ETFdb Portfolio 2.11% -4.53% -4.94% 0.20% 2.07% n/a n/a
Mining Boom ETFdb Portfolio 1.28% -7.08% -12.88% -10.86% -8.28% n/a n/a
2013 ETFdb Portfolio 1.23% -4.56% -4.26% 2.83% 5.36% 45.48% n/a
As Of 12-19-2014

Disclosure: No positions at time of writing.