It is going to be 96 degrees in the shade on Wall Street again
today, a good day to phone it in. If you
don’t want the NSA listening, you might call on a Leap Wireless prepaid phone. AT&T thinks plenty of people are doing
that so they offered twice the price to acquire the company which gave a leap
to the telecomm sector and the iShares Dow Jones U.S. Telecommunications Index
Fund (IYZ) in
particular. The fund had ranked in the
lower half for most of the past year until it broke into the top 100 in late
April, made 10th place on May 31st, and is today’s new Quant leader.
The move in late April was driven by a rising Fundamental Score
into the upper 60s even as the price rallied 10%. By late May its technical score also rose
into the 60s and a rolling over chart brought out the bears which boosted its
sentiment score into the 80s. The roll
over gave back most of the April rally to June 24th but the price
held around its February high. Bouncing off
that level drove its technical score into the 70s, at a similar level to its
Fundamental Score. It is nice to see technicals
and fundamentals rising at the same time and the moves were confirmed by the
fund paying its highest dividend ever on July 2nd. Today we see its proprietary ETFG® implied volatility score rising from 22.3 to 73.5 which gets its sentiment
score up to 66.9. It all combines for
its highest ever Total Score of 73.1 and today’s 1st place ranking.
Some of the leap in IYZ is attributable to the takeover of Leap
Wireless accounting for almost 3% of AUM but AT&T accounts for more than
10%. The top constituent declined on the deal but held above a low from a few
days ago which was higher than a low from the prior week so the market seems to
be encouraging similar deals. IYZ’s 26
constituents would be prime players in such a trend and combine for a 9.47
Green Diamond Reward Rating while carrying a lower than average 3.85 Red
Diamond Risk Rating. Exhibiting a balance of strong Fundamental and Behavioral measures
puts the fund in Quant’s sweetest spot today.
Take a look at this timely opportunity and thanks for taking a look at
ETFG® Daily Perspectives.
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