Tuesday, December 11, 2012

Quant is feeling a little Loonie this morning, not the Daffy Duck way but the Canadian way as the iShares MSCI Canada Index Fund (EWC) jumped 43 positions into a 3 way tie for 8th place with two of the tech funds mentioned yesterday.  It gets up there on a spike in its Sentiment Score which saw big gains in the Put/Call and Short Interest measures.  Other measures come in the high 60s, not bad but not great, so we will see if those sentiment measures drive up the technicals over coming days.  The fund is weighted towards the financial industry that funds Canada’s natural resource based economy and those energy and mining companies come right behind financials in the fund’s higher weightings.  It gets a high 9.21 Reward Rating while carrying a low 3.1 Risk Rating.  Not bad eh?  But if you don’t think this one will turn your Loonies into Twonies, take a look down south at another natural resource driven economy, Peru.  Here we see the iShares MSCI All Peru Capped Index Fund (EPU) jumping 188 positions into 23rd place, one of Quant’s biggest movers today.  That jump is partially accounted for by a large drop in the prior day’s Sentiment Score which regular readers know is Quant’s more volatile score.  But even if we take that out, the fund has been trending along the high double digit ranks recently and today we see it back in the top 25 where it got a few times over the past month.  We hope its return to those upper ranks will bring some outperformance this time.  This fund gets a 9.61 Reward Rating with another low 3.94 Risk Rating.  If you like Canada more because it has an English Common Law legal system, you might also like Malaysia.  Like Canada and Peru, it also has a resource based economy. Also like those other two, the iShares MSCI Malaysia Index Fund (EWM) has heavy weightings in the financial sector.  Unlike the other two, EWM has not been seen in the upper ranks until today’s 94 place jump into Quant’s 20th position.  It gets an above 9 Reward Rating at 9.07 but this time we see an even lower Risk Rating of 1.33 which can be explained by the tight trading range on its 1 year price chart.  Its 72.7 Behavioral Score suggests it may be ready to break out of that range.  Its Fundamental Score of 69.2 is held back by its lower than usual yield and middling P/E but its Price/Cash Flow and Price/Book Value ratios are about as low as they have ever been.  Asia, South America, or our neighbors in the Great White North; wherever your sentiments lay, Quant has investing ideas for you today. 

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