Bull Run Continues, Short Trade Gets Stopped Out

by on May 18, 2013 | ETFs Mentioned:

The party continued on Wall Street this past week as bullish euphoria carried equity indexes further into uncharted territory; the S&P 500 Index cruised past the 1,650 level while the Dow Jones Industrial Average settled above the 15,300 mark. On the data front, potential signs of weakening fundamentals began to resurface after industrial production and weekly jobless claims came in below expectations, although these releases barely put a minor dent in the bulls’ confidence [see also The Cheapest ETF For Every Investment Objective].

ETF Insider Recommendations

Our only pick for this week resulted in a small loss after our stop-loss was triggered following the continuation of the bull run on Wall Street.

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

Short

Down Arrow -1.2%

Closed Trade: Short XLB: Down 1.2%

This defensive recommendation was mistimed, despite our fundamental analysis being correct. Industrial production data missed the mark this week, but both the industrial and basic materials sectors ignored this headline and continued their ascent. XLB failed to turned lower and triggered our stop-loss on Wednesday, forcing us to incur a small loss that turned out for the best when considering that this ETF rallied into the close on Friday afternoon.

XLU Update 

We contemplated taking profits on this recommendation since it already hit our profit target of $40 a share; however, we decided to keep it open since XLU appears to be gearing up for another run higher judging by its rising support levels since enduring a correction in early May. We will be quick to lock-in profits next week should broad selling pressures resurface.

ETFdb Portfolios

Retirement ETFdb Portfolios

Our retirement strategies largely ended up in green territory this week with the strongest gains coming out of the 30 Years Til Retirement and 5 Years Til Retirement Portfolios. Year-to-date, the best performing strategy remains the 30 Years Til Retirement Portfolio while the conservative Ready To Retire Portfolio is still the laggard.

ETFdb Portfolio 1 Week 4 Week 13 Week YTD 1 Year 3 Year 5 Year
5 Years Til Retirement Portfolio 0.95% 0.87% 3.80% 5.87% 11.95% 30.67% n/a
10 Years Til Retirement Portfolio 1.24% 1.19% 4.91% 7.10% 14.17% 33.31% 86.99%
20 Years Til Retirement Portfolio 1.37% 1.32% 5.53% 8.17% 15.73% 37.38% 100.06%
30 Years Til Retirement Portfolio 1.69% 1.40% 5.84% 8.06% 16.93% 39.45% 109.02%
Aggressive Portfolio 1.81% 1.31% 5.83% 7.39% 14.69% 26.68% n/a
Cheapskate Portfolio 0.89% 1.64% 5.54% 8.57% 15.49% n/a n/a
Low Volatility Portfolio 0.78% 1.04% 3.79% 5.24% 7.86% n/a n/a
Moderate Portfolio 1.02% 0.83% 4.19% 6.59% 12.06% 27.02% n/a
Ready To Retire ETFdb Portfolio 0.59% 0.79% 3.53% 6.30% 9.65% 23.52% 64.07%
As Of 07-24-2014
Regional ETFdb Portfolios

Foreign equity markets were a bit shaky this week as profit taking pressures hit overseas investors, leaving the majority of our regional strategies in shallow red territroy. Year-to-date, the best performing strategy remains the Global Titans Portfolio while the new laggard is the LatAm Centric Portfolio.

ETFdb Portfolio 1 Week 4 Week 13 Week YTD 1 Year 3 Year 5 Year
Africa-Centric Portfolio 1.55% 3.29% 2.28% 9.93% 21.05% 17.36% n/a
Asia-Centric ETFdb Portfolio 1.74% 2.30% 7.63% 7.50% 11.53% 9.03% n/a
BRIC-or-Bust ETFdb Portfolio 2.08% 1.11% 9.47% 6.95% 12.75% -12.79% n/a
Easy-As-ABC ETFdb Portfolio 0.43% 0.37% 3.98% 4.58% -0.40% n/a n/a
Emerging & Frontier Markets ETFdb Portfolio 2.05% 2.54% 7.15% 8.81% 10.44% 2.49% n/a
Euro Free Europe Portfolio 1.22% -0.68% 3.42% 0.52% 8.55% 14.35% n/a
Ex-Europe ETFdb Portfolio 1.17% 1.60% 5.17% 7.81% 12.97% 25.83% 71.96%
Ex-U.S. Portfolio 1.32% 1.36% 4.65% 6.21% 13.92% 15.42% 50.89%
Global Titans ETFdb Portfolio 0.94% 0.16% 2.95% 4.11% 12.36% 26.39% n/a
LatAm Centric ETFdb Portfolio 1.38% 1.87% 7.15% 4.63% 4.65% n/a n/a
As Of 07-24-2014
Themed ETFdb Portfolios

Our themed strategies turned in mixed performances with the Consumer Centric Portfolio taking the lead on the week followed close by last week’s leader, the High Tech Portfolio. Year-to-date, the Baby Boomers Portfolio remains at the top of the performance list while the GLD-Free Gold Bug Portfolio remains by far the worst performer with double-digit losses.

ETFdb Portfolio 1 Week 4 Week 13 Week YTD 1 Year 3 Year 5 Year
Actively-Managed ETF Portfolio 0.65% 1.81% 4.31% 4.75% 7.88% n/a n/a
2012 ETFdb Portfolio 1.38% 0.39% 6.70% 8.66% 17.29% n/a n/a
AlphaDEX ETFdb Portfolio 1.53% 0.89% 4.46% 5.37% 12.42% 20.98% n/a
Alpha Seeker Portfolio 2.0 0.59% 0.84% 4.74% 6.95% 12.36% 27.89% n/a
Baby Boomers ETFdb Portfolio 1.72% 0.32% 6.62% 8.31% 22.79% 68.23% n/a
Ben Graham 50/50 Portfolio 0.23% 0.68% 4.36% 6.45% 10.01% n/a n/a
Better-Than-AGG Total Bond Market ETFdb Portfolio 0.12% 0.15% 2.03% 4.90% 5.24% 10.21% n/a
Black Swan Hyperinflation Portfolio -0.59% -1.39% 1.26% 5.69% 3.23% -13.32% n/a
Commodity Guru ETFdb Portfolio 0.63% -0.49% 1.70% 4.57% 6.46% -2.69% n/a
Cheapskate Hedge Fund ETFdb Portfolio 0.07% 0.92% 1.75% 2.36% 3.19% -2.86% n/a
Energy Bull ETFdb Portfolio 1.31% -0.66% 3.92% 8.51% 16.19% 15.62% n/a
Equal Weight ETFdb Portfolio 0.69% 0.75% 4.33% 6.46% 11.66% n/a n/a
Financials Free ETFdb Portfolio 0.79% 0.15% 3.20% 7.29% 14.75% 31.44% 83.03%
Futures Free Commodity ETFdb Portfolio 0.85% 0.59% 2.95% 5.25% 6.42% -18.68% n/a
GLD-Free Gold Bug ETFdb Portfolio -2.60% -0.54% 5.32% 18.57% 2.28% -33.43% n/a
Greedy When Others Are Fearful ETFdb Portfolio 1.05% 2.07% 5.07% 9.11% n/a n/a n/a
High-Tax Bracket ETF Portfolio 1.29% 0.67% 3.87% 6.25% 13.09% 24.95% 71.64%
High Tech ETFdb Portfolio 2.22% 2.52% 10.69% 11.80% 24.59% n/a n/a
High Yield ETFdb Portfolio 0.96% 0.55% 4.38% 7.58% 13.40% 39.27% 99.03%
King Dollar ETFdb Portfolio 1.08% 1.16% 3.89% 5.46% 8.50% 22.26% n/a
Kitchen Sink ETFdb Portfolio 0.70% -0.05% 2.66% 4.55% 9.98% 21.96% n/a
Monthly Dividend ETFdb Portfolio 0.72% -0.08% 3.40% 7.86% 12.65% 33.15% n/a
Pure Growth ETFdb Portfolio 1.39% 0.57% 4.98% 6.22% 13.82% n/a n/a
Pure Value ETFdb Portfolio 1.09% 0.06% 4.38% 6.98% 16.60% n/a n/a
RAFI ETFdb Portfolio 1.87% 1.12% 5.40% 6.38% 17.62% 33.00% 97.83%
Simple (But Effective) Safe Haven ETFdb Portfolio 0.20% -0.86% 1.90% 7.80% 10.07% 19.21% 65.08%
Small Cap ETFdb Portfolio 1.24% -0.08% 3.12% 4.98% 11.93% 25.44% n/a
The Sky Is Falling Portfolio -0.63% -0.73% -1.75% 0.80% -0.80% 1.00% n/a
Socially Responsible ETFdb Portfolio 0.69% 0.39% 4.58% 5.47% 11.35% n/a n/a
Risk On ETFdb Portfolio 0.95% 1.56% 8.02% 11.22% 20.24% n/a n/a
Consumer Centric ETFdb Portfolio 0.28% 1.13% 2.42% 4.30% 12.85% n/a n/a
Agri-Bull ETFdb Portfolio 0.58% -2.18% -1.43% 4.88% 8.40% 5.14% n/a
8% Yield ETFdb Portfolio 1.30% 0.49% 4.31% 9.03% 14.18% n/a n/a
Mining Boom ETFdb Portfolio 0.58% 2.93% 7.88% 12.13% 10.37% n/a n/a
2013 ETFdb Portfolio 1.20% 0.49% 4.17% 8.17% 11.81% n/a n/a
As Of 07-24-2014

Disclosure: No positions at time of writing.