No mercy on Wall Street. Post-election profit taking pressures continue to overpower bullish bargain shoppers as “fiscal cliff” worries have taken center stage. Amid growing fears over looming tax-hikes, escalating tensions in the Middle East between Israel and Palestine have only added to the clouds of uncertainty plaguing the global economic outlook. The S&P 500 Index has managed to sink below our outlined level at 1,375 and is now fighting to stay above the next major support which comes in at around 1,350 [see Free 7 Simple & Cheap All-ETF Portfolios].
Below, we highlight how the ETFdb Analyst Picks have been performing, noting any important fundamental catalysts while also keeping an eye on key technical levels for our recommendations:
The utilities sector has been by far one of the worst performers following the presidential election, with MLPs being perhaps the only asset class to post a more dismal return over the last two weeks. The sell-off in XLU can be largely attributed to overblown “fiscal cliff” fears, with many anticipating a worst case scenario of tax hikes across the board. This recommendation is showing signs of stabilizing, and seeing as how the fundamental appeal of this sector remains unchanged, we feel this steep pullback should welcome buyers over the coming weeks.
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Disclosure: No positions at time of writing.
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