ETF & Mutual Fund Watchlist for April 11, 2018

Equities were choppy over the past week, but most major indexes rose into Wednesday trading. The Dow Jones Industrial Average underperformed.

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The S&P 500 Index has bounced off its 200-day moving average four times in April, historically consistent with mild corrections. Larger corrections over the past decade (2010, 2011, 2015 and 2016) have finished with a dip below the 200-day.

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The Dow Industrials also bounced off its 200-day moving average.

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Although the Nasdaq has suffered in recent weeks, it’s strength earlier in the year has kept it above its 200-day MA.

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The Russell 2000 tends to outperform in bull markets and it’s above its 50-day moving average. If we’ve seen the bottom of this correction, the other indexes will soon follow.

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Technology led the largest S&P 500 sectors. Facebook (FB) rebounded strongly on Tuesday as CEO Mark Zuckerberg testified before the Senate.

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Energy, telecom and materials were among the best performing sectors.

Biotechnology lifted the healthcare sector. Pharmaceuticals performed well, and medical devices outperformed the overall sector. Healthcare providers underperformed.

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On Friday, Citigroup (C), J.P. Morgan (JPM) and Wells Fargo (WFC) will report earnings. Analysts predict solid earnings increases for all but Wells, which is still recovering from its accounting scandal.

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Energy shares rallied strongly last week as crude oil climbed more than 5 percent. Crude oil is close to a new 52-week high. Energy stocks underperformed in 2018 relative to oil prices. This week’s move indicates some traders are positioning for a breakout.

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Gold moved up sharply on Wednesday and has about 2 percent to go before it completes a long-term consolidation.

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Emerging-market currencies weakened over the past week. The Turkish lira and Russian ruble both fell following U.S. sanctions. WisdomTree Emerging Currency (CEW) needs to hold above $19.60 to avoid a short-term bearish outlook.

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Developed markets have steadily underperformed emerging markets since the start of 2017. They are now testing this down trend. The S&P 500 Index has performed as well as emerging markets since September.

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