A report from Standard & Poors on Thursday, suggesting that fourth quarter GDP would expand 0.6 percent less than previously anticipated as result of the government shutdown, raised expectations that the Federal Reserve would delay the taper of its bond purchases. Those expectations were confirmed by Thursday afternoons report from The Wall Street Journals Jon Hilsenrath entitled, Fed Unlikely to Trim Bond Buying in October. The likelihood that quantitative easing would continue at full strength for the foreseeable future weakened the dollar against the euro. On Thursday and Friday the euro came close to hitting its 2013 high of $1.3710, which was reached on February 1. The 17-nation currency reached a high of $1.3682 on Thursday and climbed as high as $1.3699 on Friday. After, the FOMCs September 18 decision against the Septaper, FXE broke through the overhead resistance FXE had been experiencing at $133. This ETF has been trading above that level for twenty-four consecutive days. Fridays 0.01 percent advance to $135.37, allowed FXE to finish the week with a 0.96 percent advance, remaining 1.96 percent above its 50-day moving average of $132.76. FXEs big gains on Thursday and Friday broke the head and shoulders pattern which had formed on the FXE chart. Usually, a rise above the neckline breaks the pattern. On Thursday, we saw FXE rise well above the top of the head, where it remained on Friday. The Relative Strength Index for FXE rose to 66.69 from last Fridays close at 58.31. The MACD just crossed above the signal line, suggesting that FXE should continue to advance during the immediate future.
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20, 2013, 9:00 AM 0 Email ETF Database is an online guide to ETF Investing Recent Posts Closing Defensive Position In ETF go here now Insider Portfolio Here is a look at ETFs that currently offer attractive income opportunities. The high-yield candidates included in this list meet two sets of criteria. First, each of these funds is deemed to be a high yield prospect because it boasts an annual dividend yield upwards of 5%. Second, each of these ETFs also boasts over $10 million in total assets under management to help steer investors away from less established funds.AAs always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques. To get access to all ETF Insider recommendations, sign up for aA free 14-day trial of ETFdb Pro .
ETFs Churning Most Cash Ever as $47 Billion Flows Back to Market
Puerto Rico munis have risen to infamy this year as the S&P Municipal Bond Puerto Rico Index is flirting with a year-to-date loss of 20% compared to a decline of around 1% for the S&P Municipal Bond Index. Puerto Rico, a territory of the U.S., has $70 billion in munis outstanding and those bonds have the lowest possible investment grade rating. [ BlackRock Cautious on Muni Bond ETFs ] The commonwealths bonds have rallied since officials gave a webcast briefing for investors on Oct. 15 in which they said the territory has sufficient funding to avoid borrowing before June 30, according to Bloomberg. The Market Vectors ETF, assuming it comes to market, would track the Barclays Plcs Custom Puerto Rico Municipal Composite Index. In addition to Puerto Rico, American Samoa, Guam, the Northern Mariana Islands and the Virgin Islands could be represented in the ETF, though the bulk of the funds assets would be allocated to Puerto Rico, Bloomberg reported.
Fitch Ratings put the government of the worlds biggest economy on watch for a possible credit downgrade. After this drama with this past shutdown is over, people will have to focus on fundamentals, and thats earnings, holiday sales and the impact of the debt negotiations on the economy, Matt McCormick, who helps oversee $10.1 billion as a portfolio manager at Cincinnati, Ohio-based Bahl & Gaynor Inc., said by phone Oct. 16. All of that is going to be less than stellar. Profit Growth While profit growth has slowed, the S&P 500s valuation is in line with the historical average. The S&P 500 trades at 16.8 times earnings, compared with the 10-year average of 16.3, data compiled by Bloomberg show. After this year, companies will resume their profit expansion, with S&P 500 earnings forecast to increase more than 10 percent in 2014 and in 2015, according to analyst estimates.