ETF Insider: Election Jitters Drag On Stocks
Sat, Nov 3, 8:15 AM ET, by Michael Johnston
This shortened trading week got off to an encouraging start as investors digested a plateful of positive economic data. Better-than-expected consumer spending, ISM data, and nonfarm payrolls shed light on the domestic recovery, however, profit taking pressures ultimately prevailed, dragging major benchmarks into red territory on the week. With all of the good news on the table, it’s fair to say that pre-election jitters were the culprit behind Friday’s sell-off [see Free 7 Simple & Cheap All-ETF Model Portfolios].
Actionable ETF Trade Ideas
|Last Week’s Actionable ETF Ideas
Our picks from Monday’s Insider posted disappointing performance results as profit-taking pressures on Friday leeched away all of the gains accumulated earlier in the week. 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 VIG: Up 0.1%
This ETF got off to an encouraging start after markets resumed trading on Wednesday; VIG held above $58.50 on Wednesday and went onto settle above the $59.50 level on Thursday. While our timing was fairly spot on with this trade, unforeseen profit taking pressures on Friday knocked VIG lower to a level just barely above its opening price on the week.
Trade #2 Long XLP: Down 1.2%
This recommendation was frustrating as XLP drifted sideways on Wednesday and Thursday, oscillating between minor gains and losses during both trading sessions. On Friday, XLP failed to summit the $35.60 level as selling pressures swept over Wall Street, despite encouraging employment data.
Trade #3 Long GLD: Down 2.4%
This was our most frustrating pick on the week as gold took an unexpectedly steep tumble on Friday after nonfarm payrolls data came in well above analyst expectations. GLD stayed within our outlined range on Wednesday and Thursday as gold prices drifted sideways, however, profit taking pressures on Friday triggered our stop-loss as gold prices took a nosedive lower.
Retirement ETFdb Portfolios
Our retirement portfolios posted mixed results as weakness in the equity market on Friday ate away much of the profits tacked on earlier in the week. From a year-to-date perspective, our 20 Years Til Retirement Portfolio remains at the head of the pack, while the bond-heavy Retire To Retire Portfolio continues to lag behind.
As Of 11-01-2012
Regional ETFdb Portfolios
Foreign equity markets ended up all over the place as a shortened trading week on Wall Street left many scrambling to take profits ahead of the weekend. Our Africa-Centric Portfolio continues to lead the way higher on the year, while the Easy-As-ABC Portfolio sits at the bottom of the barrel.
As Of 11-01-2012
Themed ETFdb Portfolios
From our themed strategies, the 2012 ETFdb Portfolio remains to be the strongest performer year-to-date. On the other end of the spectrum are the Cheapskate Hedge Fund Portfolio and our Sky Is Falling Portfolio, both of which are down about 2% each so far on the year.
As Of 11-01-2012
Disclosure: No positions at time of writing.
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