| THE
NO LOAD MUTUAL FUND/ETF TRACKER
Update for Friday, December 4, 2009
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This week's hot topics are:
1. "Reader Contribution"
2. "Getting Squeezed By Low Volume ETFs"
3. "RMD Waived For 2009"
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5. "Sunday Musings: Making Up Is Hard To Do"
6. "Honing In On Bond Funds And Sell Stops"
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THE LINK TO OUR CURRENT MUTUAL FUND/ETF STATSHEET is:
http://www.successful-investment.com/StatSheet/SS120309.htm
This StatSheet is updated through Thursday, December 3, 2009.
The next scheduled update will be Thursday, December 10, 2009.
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Friday, December 4, 2009
A GOOD JOBS REPORT
All eyes were feasted on today's jobs report and, for a change, it did not disappoint. The economy only shed 11,000 jobs (vs. 100,000 expected), and the unemployment rate dropped from 10.2% to 10%.
The Dow jumped 150 points within minutes but the rally completely fell apart. The major indexes briefly dipped into negative territory, but managed to close on the upside. For the week, the bulls came out ahead with Dow gaining 0.8%, while the S&P 500 and Nasdaq added 1.7% and 2.6% respectively.
Our Trend Tracking Indexes (TTIs) advanced as well and have moved above their long-term trend lines as follows:
Domestic TTI: +7.63%
International TTI: +12.43%
Hedge TTI: +1.31%
The big loser today was gold, which dropped $49 as the dollar rallied on good employment numbers. Profit taking played a big role as well, since gold has rallied some 38% for the year. Obviously, a correction was way overdue, but today's pullback was the worst since December 2008.
It remains to be seen if today's employment numbers are the start to a turnaround or simply a monthly aberration. One of the key numbers was that temporary employment increased by 52,000. Some economists believe that these gains could result in employers turning these jobs into a permanent situation. Only time will tell.
To me, it seems that all of this good news has been widely expected and priced in on Wall Street. With the markets hovering at these lofty levels, there is no reason to become complacent. Our sell stop discipline will remain with us no matter what the economic circumstances turn out to be.
Have a good week.
Ulli...
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Ulli G. Niemann
Registered Investment Advisor
714.841.5804 Toll free: 866.580.6764
http://www.successful-investment.com
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