Secretary Kerry says it will be an “unbelievably small” war
but that may be enough to keep the Fed printing an unbelievably large amount of
money for our markets to absorb. Traders
partied on with the S&P 500 gaining 1% and the ETFG QE10
gaining almost 2% for the day. The SPDR
S&P China Fund (GXC)
is a constituent in both of our smart beta indices and was up 2% yesterday,
more than 7% over the past week and more than 12% since it earned the 10 Green
Diamond Reward Rating on July 12th. It gets that distinction today for the 24th
time since then. This is no fading star
as it also holds Quant’s 1st place and dominates the Diamond model
to such an extent that we have no 9s again today.
That big rally over the last 8 weeks will pad our performance numbers
but does not help GXC’s Fundamental Score which has come down from the high 90s
last month to 89.5 today. That is still
best among all of the 730 equity ETFs getting scored. Its technical score has risen with its mountain
chart, up to 70.6 from the high 50s at the late June low. Sentiment has been volatile ranging from the
30s to the 70s recently and comes in at 63.4 today. That mountain chart was a black diamond ski
slope in the first half when GXC sustained a 20% decline, so pay attention to
its above average 5.44 Red Diamond Risk Rating driven by a high 8.08 Deviation
score. It still trades below its early
year high and lower still than a double top formed in April 2011. The fund’s 213 constituents are 91% exposed
to the Hong Kong dollar with more than 8% in US ADRs. If you have trouble following its benchmark
S&P China BMI Index, it closely tracks the widely published Hang Sang Index. Fund flows have been mostly negative over
recent weeks but the price jump in recent days is turning its 5 day flow curve towards
the positive side.
GXC is just one of the emerging markets funds that have been scoring
and performing well since that late June low.
Conventional wisdom then was to avoid the emerging markets in front of
the Fed’s tapering but if you follow our models, you know that ETFG provides
anything but conventional wisdom. Thanks
for checking into ETF Global® Daily Perspectives.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.