ETF Insider: Winning Trades In A Choppy Week

ETF Database

Major equity indexes drifted lower throughout the week as resurfacing worries over Europe brought back the bear on Wall Street. Nonetheless, U.S. markets managed to end the week on a very positive note as better-than-expected durable goods orders data bolstered equity benchmarks higher. FOMC minutes surprisingly rattled the bulls despite talks of more stimulus to come; this allowed for our defensive-minded recommendations to prosper, leaving us with a solid gain during a mixed week [see also How To Pick The Right ETF Every Time].

Actionable ETF Trade Ideas Last Week’s Actionable ETF Ideas
Ticker Position Week Performance
EZA

Long

Up Arrow

+0.2%
LQD

Long

Up Arrow

+1.4%
BND

Long

Up Arrow

+0.6%

Our picks from Monday’s Insider performed very well, with all of our recommendations generating a nice profit during an otherwise choppy week on Wall Street. Below, we highlight how our trade ideas fared during the week [sign up for a free trial of ETFdb Pro to get actionable ETF ideas every Monday, as well as access to more than 45 all-ETF model portfolios].

Trade #1 Long EZA: Up 0.2%

This was by far our most frustration recommendation on the week. EZA got off to a very encouraging start as shares held above $65.50 on Monday and went onto climb past the $67 level on Tuesday. Selling pressures began creeping in Wednesday however, and since then, EZA traded lower into the closing bell Friday; shares closed just above Monday’s opening price, leaving us with a minimal gain on the week. 

Trade #2 Long LQD: Up 1.4%

This recommendation was spot-on; LQD held above support at $118 a share on Monday as anticipated and resumed its uptrend in the following days. This ETF climbed higher throughout the week as worries over Europe promoted profit-taking, which in turn encouraged many to jump ship back to the bond market. LQD approached our target at $120 a share without hesitation, although it ultimately fell short by a few pennies; nonetheless, this trade turned in a solid profit on the week. 

Trade #3 Long BND : Up 0.6%

This fundamentally-defensive recommendation also played out as anticipated. BND held above $84 a share on Monday and went onto climb higher throughout the week, pumping the breaks a bit on Friday as equity market euphoria took its toll on bonds. BND missed our price target just barely, although it still managed to clinch a respectable gain on the week. 

ETFdb Portfolios

Retirement ETFdb Portfolios

Our Cheapskate ETFdb Portfolio managed to finish off the week ahead of the pack in positive territory while our equity-heavy 30 Years Til Retirement came in last place from a performance perspective. 

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Regional ETFdb Portfolios

Our regional portfolios posted lackluster returns across the board as “risk-off” trading was a dominant theme. From a year-to-date performance perspective, our Africa-Centric ETFdb Portfolio continues to lead the way with double-digit gains, up nearly 12% on the year. 

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Themed ETFdb Portfolios

Our Consumer-Centric ETFdb Portfolio, a new addition to the lineup, endured a lackluster debut, ultimately ending the week fairly flat. Our GLD-Free Gold Bug ETFdb Portfolio took the lead by a wide margin, surging 4% on the week, while most of our other themed strategies enjoyed minor gains or ended up in shallow red territory. 

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Disclosure: No positions at time of writing.

Click here to read the original article on ETFdb.com.

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