Category

Transportation ETFs

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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Dividend ETF Bubble? Not Unless Treasury Bonds Burst First

By | Bond ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, Energy ETFs, ETF Philosophy, Transportation ETFs, US Markets and ETFs, Utilities ETFs | No Comments

Banks in the United States received billions of government-sponsored investment dollars to cover monstrous mortgage debt losses. Similarly, banks in Europe are looking for a similar lifeline to shore up balance sheets plagued with toxic Spanish and Italian country bonds. On Friday, June 8, investors are inclined to believe that the Eurozone will come to the rescue. By Monday, June 11… who knows? Granted, an exchange-traded fund enthusiast needs to stay atop of changing market conditions. That said, it is often…

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What Should Investors Make Of Relative Weakness In The Transportation ETF?

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

You don’t have to agree with every aspect of “Dow Theory” to appreciate one of its most venerable features. In particular, the Dow Jones Transportation Index should lead the way higher for the Dow Jones Industrial Average. Why has this particular axiom maintained a level of popularity for more than a century? In essence, transporters “take” materials to the industrial giants that “make” goods. It follows that if transportation companies are increasing their profits, their share prices should rise, thereafter blazing a trail for industrial producers. …

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Are Tech and Consumer ETFs Serving As Safer Havens?

By | Consumer ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Health ETFs, Industrial ETFs, Internet ETFs, Materials ETFs, Natural Resources ETFs, Semiconductor ETFs, Technology ETFs, Telecom ETFs, Transportation ETFs, US Markets and ETFs, Utilities ETFs | No Comments

Financial stocks rocketed ahead in the first quarter and Bank of America (BAC) recently received a high-profile upgrade. So why is the SPDR Select Sector Financials Fund (XLF) one of the worst performers over the last 5 days? Aluminum giant, Alcoa, surprised Wall Street with its stronger-than anticipated earnings report. So why is the SPDR Select Sector Materials Fund (XLB) battling to stay above a critical long-term trendline? Apparently, the more things change, the more they actually stay the same. As much as…

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Troubled Spirits In The Materials ETF World

By | Commodity ETFs, ETF Philosophy, ETF Strategy, Global ETFs, Large Cap ETFs, Materials ETFs, Natural Resources ETFs, Small Cap ETFs, Special Sectors ETFs, Transportation ETFs, US Markets and ETFs | No Comments

Month-over-month, most sector investments have provided investors with ample capital appreciation. Country ETFs with ties to technology, energy and infrastructure have all performed admirably. Yet there are a variety of areas of weakness that cannot be disregarded as inconsequential. For instance, in my February commentary on underachievement in the transportation arena, I highlighted the concerns with the Dow Industrials Average hitting new highs at the same time that the DJ Transportation Average is heading in the opposite direction. And on my weekend podcast, I talked about the problematic history…

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Transportation ETF Fires A Dow Theory Warning Shot

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

Analysts have already lowered 2012 profit estimates for the S&P 500 from the 9% range down to the 6% range. Granted, profits may still be rising. But what could happen to stock prices when profits are climbing at a slower pace? And what happens if the manufacturers who are producing at a slower pace ultimately find themselves shipping less goods? In Dow Theory, the Dow Jones Transportation Average (DJT), or the exchange-traded fund iShares DJ Transportation (IYT), is expected to move in the same direction as the…

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Using The CurrencyShares Euro Trust (FXE) As An ETF Selection Tool

By | Currency ETFs, Current Affairs and ETFs, Emerging Market ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Materials ETFs, Natural Resources ETFs, Small Cap ETFs, Special Sectors ETFs, Transportation ETFs, US Markets and ETFs | No Comments

In my 10/27/11 commentary, “3 Reasons Stock ETF Investors Should Continue To Tread Lightly,” I pointed to the fact that the month-long stock surge had not come from the spectacular earnings season; in fact, the average return for individual securities on the session following a Q3 earnings report was -0.21%, suggesting that the entire October run-up emanated from enthusiasm for pan-European cooperation.  It follows that articles that primarily attribute falling equity markets to the U.S. Super Committee’s failure to reach an accord are misleading. Granted, political dysfunction does increase uncertainty about the…

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Uninspired Guidance Does Not Hurt Tech Sector ETFs

By | Consumer ETFs, Current Affairs and ETFs, Energy ETFs, ETF Philosophy, Financial ETFs, Health ETFs, Industrial ETFs, Materials ETFs, Retail ETFs, Semiconductor ETFs, Technology ETFs, Transportation ETFs, US Markets and ETFs | No Comments

One of the “constant” declarations of the current earnings season? Of those reporting, roughly 3/4 of corporations exceeded profit-per-share estimates. On the other hand, it’s not uncommon for 2/3 to 3/4 of companies to beat lowered expectations; key executives help to create “beatable” numbers. In addition, each of 8 major economic sectors typically have corporations that, historically speaking, raise the earnings-per-share guidance for their stocks. For instance, according to the folks at Bespoke Research, technology corporations historically raise future earnings guidance by 14.3%. Consumer staples…

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Sea, Solar and Smart Phone ETFs Hit New 52-Week Lows

By | Alt Energy ETFs, Current Affairs and ETFs, Energy ETFs, Global ETFs, Special Sectors ETFs, Technology ETFs, Telecom ETFs, Transportation ETFs, US Markets and ETFs | No Comments

Like IPOs, freshly launched ETFs receive prodigious praise out of the trading gate. And like many IPOs, many struggle to live up to the hype. Consider the First Trust Cloud Computing Fund (SKYY). After 9 trading sessions, SKYY currently rests at its lowest close since its July 6 debut. And that’s after an enormous amount of positive press. In reality, I am not bad-mouthing SKYY. How could I… we’re talking about a period that is less than 2 weeks! What’s more, this fund will probably…

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3 ETFs That Moved While You Were Sleeping

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

Conventional commentary on Wednesday, 7/6/2011, described the trading as light and lackluster. Yet S&P SPDR Gold (GLD) climbed back above a critical trendline, PowerShares Developed Market Ex US (PXF) experienced 30x the normal trading volume and iShares DJ Transports (IYT) notched a new 52-week high. Beginning with the yellow metal, some surmised that the “risk-on” trade would result in a downtrend for S&P SPDR Gold (GLD). After all, GLD had risen a staggering 20% between the three months of late…

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