Tuesday, May 21, 2013

Yesterday’s quiet market triggered some movement in our rankings with 4 new names in the top 10.  New may not be the best term though as they are familiar funds and the overall message of the models continues to favor US broad market products with energy still the favorite sector and a couple of European funds also among the elite ranks.  The less familiar of those 4 is the iShares Russell Midcap Index Fund (IWR) jumping 48 positions into 9th place.  We don’t write about it much but we did cover it on January 28th when it had a similar move.

Back then as now the move was attributable to option activity boosting the sentiment score which is a solid 74.9 today and matched by an even better 75.1 technical score, both higher than January’s levels.  It was a one day trip to the top 10 then but the fund continued to rank well and perform well until early April when it dropped out of the top 100 until a couple of weeks ago.  Outperforming the market year to date has brought its Fundamental Score down to a middling 57.6 which is becoming more common as the market has risen faster than earnings.  A strengthening dollar favors America’s mid caps with less overseas exposure than the large multinationals which could account for those pretty technicals.  We are seeing other small and mid cap funds also scoring better though none as well as IWR with its 8.16 Green Diamond Reward Rating and a Red Diamond Risk Rating of 4.38 which is slightly less than the all equity average.  We don’t write about one day movers too much but this one performed so well last time and is confirmed by similar funds also moving up in the rankings.

The other funds joining today’s top 10 are France’s EWQ at 6th place, its highest rank this year, the very familiar SPY back at 10th and its growth cousin IVW in 5th place.  All of them do better on the Behavioral Scores than the Fundamentals.

Seeing the devastation in Oklahoma, you don’t need to be a parent to be heartsick over the loss.  On this 132nd birthday of the American Red Cross, our thoughts and prayers are with the people of Moore in hopes that the survivors will be OK.

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