Wednesday, October 10, 2012

Another cold and rainy day on Wall Street as summer gives way to winter and like Magellan, Quant is setting its sights southward to the land of the penguins.  Not Antarctica, there’s no stock market there, but Chile.  The iShares MSCI Chile Index Fund (ECH) has been scoring near the top for most of the past month and today it moved up 33 positions into 6th place.  Credit its high Fundamental Score of 90.2 which stands out against its other scores hanging around the 60 level.  The fund came down to a support line yesterday so today could be important. Chile gets a respectable country score of 83.15, higher than the good old USA and up there with other countries that are not suffering wrenching fiscal imbalances, they already had theirs in prior decades.  Free market reforms have given the country one of the strongest economies in South America.  So if the cold is making you blue, pour yourself a glass of fine Chilean Merlot or even plan a trip to one of the country’s famous surfing destinations.

Another Quant mover today may also be a cold weather play, or it could be the political season.  Last week we mentioned the Market Vectors Coal Fund (KOL) moving up after Mitt Romney declared his affection for coal in the presidential debate.  The news is filled with stories of Romney’s strong polling since then and KOL has confirmed the polls by gaining 48 positions into Quant’s 10th place today.  It may just be the weather though as the SPDR Health Care Select Sector Fund (XLV) is also moving up, now in Quant’s 18th position, its highest in several months.  Dozens of daily quantitative measures drive Quant in mysterious ways so whatever your political inclination, check in with ETF Global each day to keep your portfolio running hot.

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