Category

Transportation ETFs

U.S. Manufacturing Shrinks. Should You Rethink Your Exposure to High Beta ETFs?

By | Consumer ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Health ETFs, Industrial ETFs, Materials ETFs, Technology ETFs, Telecom ETFs, Transportation ETFs, US Markets and ETFs | No Comments

The possibility of the Federal Reserve slowing its bond purchasing program sent interest rates rocketing in May. Rate-sensitive assets — dividend stocks, REITs, MLPs, preferreds, muni bonds — all began to depreciate in value. By the end of the month, even common stocks began to stammer. Here on the first trading day of June, however, the Institute of Supply Management (ISM) offered up its assessment of U.S. manufacturers. Not only did the manufacturing sector shrink for the first time since…

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Don’t Blame China For The Sell-Off In U.S. Stock ETFs

By | Bond ETFs, China ETFs, Consumer ETFs, Current Affairs and ETFs, Emerging Market ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Financial ETFs, Health ETFs, Industrial ETFs, Materials ETFs, Technology ETFs, Telecom ETFs, Transportation ETFs, US Markets and ETFs, Utilities ETFs | No Comments

For the first time in 2013, investors do not appear to be tripping over themselves to buy every fractional percentage dip. Here on 4/15, the media have blamed the accelerated selling on commodity price depreciation and a disappointing GDP reading (7.7%) out of China. So we’re supposed to believe that a manic Monday where the domestic markets suffered their worst one-day loss in the year is a direct function of China’s above-goal (7.5%) GDP reading? Granted, China’s failure to come…

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Breakdown ETFs: Go Ahead And Give It To Me

By | Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Financial ETFs, Health ETFs, Industrial ETFs, Internet ETFs, Large Cap ETFs, Materials ETFs, Small Cap ETFs, Technology ETFs, Telecom ETFs, Transportation ETFs, US Markets and ETFs, Utilities ETFs | No Comments

Over the course of the 4-year bull market, I’ve kept an eye on the percentage of S&P 100 stocks that reside above a long-term 200-day trendline. Market pressures always seemed to develop when the level approached 86%-90%. Similarly, when the 50-day moving average for the S&P 100 reached 85%, you could pretty much count on a pullback coming to fruition. In spite of the fact that the Dow 30 logged a fresh all-time record on Tuesday (4/02/13), Wednesday’s 1% sell-off…

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Three Trends That Favor Non-Cyclical ETFs In April

By | Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Industrial ETFs, Retail ETFs, Transportation ETFs, US Markets and ETFs | No Comments

Investors may be heartened to discover that the Cyprus bailout is back on track. I am not sure how that will prevent Europeans in Italy and Spain from slowly moving their money out of beleaguered banks, but that is an issue for another day. Right now, broad-based U.S. large cap stocks are trading at record levels yet again. And as Barron’s recently penned, “Why Worry, Be Bullish!” After several decades in financial services, I find it ironic that pundits ever…

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ETFs For Potential Increases In Demand For Cars And Cell Phones

By | Commodity ETFs, Consumer ETFs, ETF Philosophy, Global ETFs, Retail ETFs, Transportation ETFs, US Markets and ETFs | No Comments

Lately, I’ve been fielding a great many questions related to automobile companies. Had I seen the 5-year highs on car purchases? Am I aware that autos were the strongest segment in 2012 retail? And what’s the best ETF for capturing the inevitable growth? In truth, I’m not necessarily convinced that the U.S. auto sector will continue along the same robust path. Government backing and a commitment to fuel efficiency may have brought Ford and GM back into play. Yet it…

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Stock ETFs That Didn’t Slump On The Failure To Pass “Plan B”

By | Commodity ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Global ETFs, Special Sectors ETFs, Transportation ETFs, US Markets and ETFs, Utilities ETFs | No Comments

The fiscal cliff steals the financial headlines on a daily basis. Yet, in spite of increasing volatility and year-end uncertainty, the hot topic hasn’t moved the broader market’s needle. Since the 11/6 election more than 6 weeks ago, the S&P 500 SPDR Trust (SPY) has effectively ended in the same place it began. Bears believe this is a sign that upcoming austerity will hamper market progress and that a failed budget negotiation may send stocks plummeting. Bulls believe that stocks…

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ETFs That Are Overexposed To Companies With Questionable Fundamentals

By | Biotechnology ETFs, Current Affairs and ETFs, ETF Strategy, International ETFs, Technology ETFs, Transportation ETFs | No Comments

FedEx (FDX) recently blamed its weak profitability prospects on $4.00 jet fuel, as producers may be opting out of costly air shipments. However, railway transporters don’t expect a bottom line bonanza either. Norfolk Southern (NSC) lowered its earnings outlook on weakness in coal transportation as well as general merchandise; NSC fell as much as 6% in after-hour trading. For all of the bullish enthusiasm surrounding multi-year highs for the SPDR Dow Jones Industrials Trust (DIA), transporters have failed to confirm…

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Large Cap ETFs: New 52-Week Highs Across The Sector Spectrum

By | Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Small Cap ETFs, Transportation ETFs, US Markets and ETFs | No Comments

The CBOE S&P 500 VIX Volatility (VIX) is screaming that stock market participants have become too complacent. Specifically, the current price (14.29) is well below 15 — the level at which market-watchers insist that investors are failing to appreciate equity risk. Do stocks have to sell off because of limited daily trading ranges and ultra-low VIX volatility? Only if you have a vested interest in a bearish outcome like Marc Faber. That said, both the 2011 summertime swoon and the May 2012 correction began with the VIX…

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Pivotal Point For The Transportation ETF And The Dow

By | ETF Philosophy, ETF Strategy, Industrial ETFs, Transportation ETFs, US Markets and ETFs | No Comments

I’ve listened to scores of prognosticators interpret Dow Theory in a variety of different ways. However, all of them may agree upon one disconcerting reality; specifically, the year-long relative weakness in the Dow Jones Transportation Index could be cause for some concern. While I do not believe in the semi-simplistic notion that the transportation stocks must lead the way for industrial stocks, I do pay attention when the iShares DJ Transports (IYT) lags the SPDR Dow Jones Industrials ETF (DIA). The best way to spot trends in…

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3 Market-Defining ETFs Suggest More Stock Pullbacks To Come

By | Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Global ETFs, International ETFs, Small Cap ETFs, Transportation ETFs, US Markets and ETFs | No Comments

European headlines are getting the lion’s share of the blame for across-the-board stock weakness. And, in fact, every investor worry pales in comparison to Eurozone debt concerns. On the other hand, weak corporate forecasts and earnings misses are also making the rounds. Most troubling? The world’s largest package delivery company, United Parcels Service (UPS), missed quarterly expectations and slashed its profit outlook for the full-year period of 2012. About a month ago, Federal Express (FDX) offered up similar warnings. (And yes… deliverers are blaming the…

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