Views From The Hill

ETF Market Summary: Dec-18-2017

daily chart of spy etf
Click to enlarge

 

Equities: The strong likelihood of passing the proposed tax reform legislation has given stocks the fuel they need to continue driving ahead. This sent the Dow-30 (DIA), SP-500 (SPY) and Nasdaq-100 (QQQ) to establish new record highs. While the Russell-2000 (IWM) failed to make a new high, it came close and led all other major ETF equity indices, with exception given to Brazil (EWZ).

Sectors: Sector breadth was emphatically bullish with 9 out of 11 groups finishing the day in positive territory. Leadership was present amongst Consumer Discretionary (XLY), Financials (XLF), Basic Materials (XLB), and Technology (XLK). Their one-year relative strength ratings are also some of the strongest in the market, thus reflecting their price resiliency year-to-date. Yet, the Energy sector (XLE) caught my attention the most as it appears to be finding support at the lower range of its channel and now attempting a bullish reversal.

Bonds: Long-Term Treasuries 20-Yr+ (TLT) sharply reversed and are now testing support at the lower range of their channel. The daily chart in this one indicates a potential head and shoulders pattern.

Currencies: The US Dollar (UUP) is also forming its own head and shoulders and signaling its own bearish omens. On the flip side is the Euro (FXE) which may be forming a reverse head and shoulders and setting up for a bullish advance and retest of November-2017’s high and resistance level.

Commodities: Commodities (DBC) continue to stabilize, thanks to Oil (USO) and no thanks to Gold (GLD), which has been trending downward and attempting to find support near its previous week’s lows.

Real Estate: The strongest player for this investment theme continues to be Homebuilders (ITB), but their relative performance to the DJ Real Estate Index (IYR) and Residential Index (REZ) has become parabolic and could eventually become vulnerable to capital rotation allocations.

 

 

RS 1Yr Exchange Traded Fund Last Chg % Chg
         
  Equities      
99 DJ-30 Industrials (DIA) 247.79 1.54 0.63%
99 SP-500 (SPY) 268.20 1.69 0.63%
100 Nasdaq-100 (QQQ) 158.64 1.32 0.84%
95 Russell-2k (IWM) 154.30 2.06 1.35%
99 EAFE (EFA) 70.80 0.83 1.19%
91 Emerging Mkts (EEM) 46.69 0.52 1.13%
99 Europe FTSE (VGK) 59.03 0.75 1.29%
71 Latin America 40 (ILF) 33.60 0.94 2.88%
63 Brazil (EWZ) 39.22 0.46 1.19%
99 Japan (EWJ) 60.62 0.72 1.20%
99 Pacific Ex-Japan (EPP) 48.21 0.38 0.79%
84 FTSE China 25 (FXI) 45.98 0.23 0.50%
0 VIX Short-Term Futures (VXX) 27.78 -0.39 -1.38%
         
  Major Equity Sectors      
99 Consumer Discretionary (XLY) 98.85 0.88 0.90%
92 Consumer Staples (XLP) 56.85 -0.03 -0.05%
50 Energy (XLE) 69.25 0.54 0.79%
96 Financials (XLF) 28.06 0.25 0.90%
96 Healthcare (XLV) 83.74 0.03 0.04%
98 Industrials (XLI) 75.05 0.55 0.74%
98 Materials (XLB) 59.95 0.87 1.47%
82 Real Estate Sector (XLRE) 33.30 0.11 0.33%
100 Technology / Info (VGT) 168.03 1.56 0.94%
27 Telecom (IYZ) 29.76 0.34 1.16%
70 Utilities (XLU) 54.41 -0.61 -1.11%
         
  Bonds & Fixed Income      
82 20+ Yr Treasury (TLT) 127.18 -1.17 -0.91%
63 Aggregate Bond Fund (AGG) 109.33 -0.14 -0.13%
61 Treasury Inflation Protection (TIP) 113.69 -0.19 -0.17%
93 Investop Corp Bond (LQD) 121.43 -0.36 -0.30%
43 High Yield Corp Bond (HYG) 87.30 0.09 0.10%
67 Pimco Intermed Muni Bonds (MUNI) 53.65 -0.05 -0.09%
94 High Yield Muni (HYD) 31.33 -0.03 -0.10%
         
  Currencies      
22 US Dollar Bullish (UUP) 24.37 -0.04 -0.15%
82 Euro Trust (FXE) 113.55 0.27 0.24%
49 Japanese Yen Trust (FXY) 85.26 -0.01 -0.01%
         
  Commodities      
78 DB Commodity Index (DBC) 15.91 0.07 0.44%
59 Gold (GLD) 119.73 0.55 0.46%
83 US Oil (USO) 11.44 -0.02 -0.17%
         
  Real Estate      
96 DJ Real Estate (IYR) 82.92 0.46 0.56%
95 DJ Home Construction (ITB) 43.22 0.63 1.48%
60 Residential Real Estate Index (REZ) 64.50 0.21 0.33%

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