Bulls Win Again

by on January 19, 2013 | ETFs Mentioned:

Much to the bears’ surprise this week, equity markets pulled off another green streak as euphoria levels remained strong. The bulls had few reasons to take profits as markets digested several upbeat earnings reports from big-name financials along with much better-than-expected weekly employment and housing starts data. Amid the improving outlook, the S&P 500 Index managed to set a five-year high and peer past the 1,475 level, settling just above the 1,480 mark on Friday [see Free 7 Simple & Cheap All- ETF Model Portfolios].

Actionable ETF Trade Ideas

Our picks from Monday’s Insider posted disappointing performance results as our internationally-flavored recommendations didn’t hold up too well, unlike domestic equity indexes which inched higher. 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
SIL

Long

-3.0%
EZA

Long

-1.9%
CAD

Long

-0.3%

Trade #1 Long SIL: Down 3.0%

This recommendation kicked off the week on a sour note as SIL traded sideways from Monday through Wednesday. We almost cut our losses on Thursday as SIL slid to a level just pennies away from our stop-loss. Bearish pressures persisted into Friday and our stop-loss was triggered, leaving us with an unpleasant and frustrating loss on the week.

Trade #2 Long EZA: Down 1.9%

This recommendation had a brief lifespan as our speculative bullish instinct proved incorrect. EZA appeared poised to rebound higher on Monday as it held above support, however, bearish pressures swept in Tuesday morning and stopped us out of this trade right at the opening bell.

Trade #3 Long CAD: Down 0.3%

This was our defensive recommendation for the week, which proved to be mistimed. CAD got off to a good start as it inched higher on Monday and into Tuesday; however, profit-taking pressures returned on Wednesday and persisted through the rest of the week as bullish momentum favored equities instead of bonds. This recommendation slipped below our outlined stop-loss on Friday, leaving us with a small loss on the week.

Disclosure: No positions at time of writing.