THE FINAL NUMBERS
NEWS: The major indices were able to hold onto modest gains today after both testing negative territory and a mid-day rally. The Dow closed up 53 points or 0.4%. The S&P 500 gained 5 points or 0.4%. The NASDAQ had a solid day, adding 12 points or 0.5%.
THE BOTTOMLINE: The S&P 500 is sitting just below the important 1400 level and really close enough to consider it at the support/resistance area. As long as the index can hold in this area it proves nothing on the upside or downside. The next high volume move in either direction will be the first signal of the coming trend.
Looking at the PFG Breakout Scan at today’s close there were 141 stock/ETFs that made the cut and a few that caught my attention. A number of oil & gas stocks such as Chevron (symbol: CVX) and Canadian Natural Resources (symbol: CNQ) {we own CNQ for clients]. A few big-name steel stocks were on the list along with aluminum company Alcoa (symbol: AA). There were three indices on the list and they tell the story of where money has been made recently. The Dow Jones Steel, Coal, and Oil Equipment & Services Indices all hit new all-time highs today.
For more on PFG’s Portfolio Management services please call 1-877-ETF-PENN.
McCALL’S CALL - CONSUMER IN RECESSION?
NEWS: The Retail Sales for the month of April were released today and for the most part they were a mixed bag. Overall the numbers beat analyst’s estimates and were an improvement from March. The retail numbers go along with the theme we have been seeing recently for economic numbers - not good, but not bad, and most importantly, Improving.
THE BOTTOMLINE: If the consumer were in the midst of a recession as most want you to believe, than explain to me how the numbers improved over last month and are better than estimates? Sure I will hear a bevy of reasons why, from where consumers were shopping to the calendar versus last year. Maybe they are solid bearish arguments, but the bottomline is that the consumer is holding up well, which would not be the case if they were heading into a recession.
The retail stocks began the day strong, but faded as the market traded in a narrow range and gave up most of the gains by the time the closing bell rang. The Retail HOLDRS ETF (symbol: RTH) fell 1% on the day. Some of the winners included: Wal-Mart (symbol: WMT), Dollar Tree (symbol: DLTR), Limited Brands (symbol: LTD), and Ross Stores (symbol: ROST).
DAILY ETF BULLETIN - BIG GAINS OVERSEAS & NEW RECO
NEWS: The international ETFs were the big winners today with Russia leading the way. The Market Vectors Russia ETF (symbol: RSX) surged 4% to close within pennies of a new high. Russia is one of the 4 BRIC countries (along with Brazil, India, and China) and has been one of the best performing countries over the last few years.
THE BOTTOMLINE: Russia is a country that is rich in commodities, especially energy and metals. Over 36% of the ETF invests in the oil & gas sector, followed by 26% in steel & iron. With the commodities the place to be recently it is not wonder why RSX and Russia have been doing so well. RSX is a high risk play due to the political situation as well as the volatility in commodity prices. However, long-term the ETF is attractive on a pullback.
Today we decided to email a NEW ETF ALERT to all subscribers of The ETF Bulletin for a BUY RECOMMENDATION. The ETF invests in emerging market countries, but specifically in one region of the world. The ETF has been on our radar for a few weeks and today felt the opportunity was ripe and decided to put some money where our mouth is. As of today’s close it is not too late to buy the newest recommendation. If you have been pondering signing up for The ETF Bulletin - today is you LUCKY DAY!
I woke up in one of those moods today so I want to share with you a Special Offer that only comes around a couple of times per year. An annual subscription to The ETF Bulletin is normally $299, BUT for the next 48 hours the annual subscription will be $100 OFF - Only $199!
You must take advantage of this offer in the next 48 HOURS! Keep in mind you will receive a weekly 5-page newsletter as well as Real-Time Email Alerts to when we are buying and why! When you sign-up today you will receive a copy of the Email Alert that was sent a few hours ago. PLEASE go to www.etfbulletin.com to take advantage of the offer today or call 1-877-ETF-PENN.
Have a great night,
Matt McCall
www.pennfinancialgroup.com