Tuesday, January 22, 2013

Quant hit the slopes over the holiday weekend.  Not Vermont or Colorado or any of those other great American destinations but Switzerland.  And the conditions there are good as the iShares MSCI Switzerland Index Fund (EWL) got some air jumping 44 positions into 16th place.  The fund has been up in these nose bleed ranks before and has always climbed to higher peaks subsequently.

With nicely balanced scores in the mid 60s to mid 70s across the board, its Sentiment Score is responsible for its improvement today boosted by some infrequent option activity rising to meet a consistently elevated Short Interest Score.  Those shorts have been taking faceplants lately as the fund has been sketching a pretty mountain chart since it first scored well in early October.  That explains its high Intermediate and Long Term Technical Scores of 77.4 each, even though the Short Term 57.8 number suggests it may need to catch its breath for a couple of days.   Its 40 constituents are concentrated with almost half of AUM in the top 3 satisfying winter needs such as Nestlé hot chocolate, Tamiflu from Roche Holdings and Theraflu from Novartis.   Mountaineers know it’s safety first and they can sleep well holding this one with its low 2.65 Red Diamond Risk Rating which includes Volatility and Deviation measures right around 4 on the scale of 10.

As Old Man Winter makes his presence felt on Wall Street, follow the swells to Davos and the snow covered Swiss Alps.  Like the rest of the market, EWL has had some ups and downs since it first began scoring well in early October but it has outperformed the S&P 500 anytime it has ranked as high as the teens.  So Quant says this one is ready to heat up your portfolios again.  We’re going to pour ourselves some of that Nestlé cocoa and hope to not be needing those other mentioned products.   Thanks for reading and stay warm this week.

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