Saturday, November 8, 2008

Weekly ETF Rewind - Week 45 (11/07/08)

(Click Image to Enlarge/ Glossary)

In another remarkable trading week, equity markets stormed higher into the politically historic US national elections, only to summarily retrace half of their recent gains in a gut wrenching two-day, ten percent rout in the face of deteriorating economic readings (AFP - Obama Win a Triumph; LA Times - Unemployment Hits 6.5%). By week's end, the S&P 500 (SPY) was down -3.1% while the EAFE International Index (EFA) was able post a slight gain of +0.3% after coordinated Eurozone rate cuts (AP - European Banks Cut).

In the Sector realm, the recession trade was back on with Utilities and Consumer Staples being the period's only winners (XLU +0.5%; XLP +0.6%), while Consumer Discretionaries and Financials fell back hard (XLY -8.1%; XLF -8.4%). Style-boxes were mixed with Small-Cap Value (PWY) stocks taken down -7.0%, even as Mid-Cap Value (PWP) stocks recorded a mild gain of +0.2%.

Week 46 of 2008 is back-weighted with economic reports, featuring Jobless Claims on Thursday and Retail Sales on Friday, among others as follows:

With significant cash on the sidelines, elections behind us, short-term overbought readings reduced, and redemption season to soon pass, perhaps markets can begin to set the stage for a mild recovery into the year-end in spite of on-going economic concerns. Enjoy your weekend!

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