/Strong Employment is the Driver

Strong Employment is the Driver

Monday, December 9, 2019– After what looked to be a tough week for the markets amid President Trump’s comments that it may be late 2020 before we can establish a trade accord with China, Friday’s job report erased most of the mess created. The market rallied back from its losses for the first week of December.

The Department of Labor announced employment numbers for the month of November and they greatly exceeded the expectation of 100,000 jobs created. The report revealed there were 266,000 jobs created in the month. Following suit, the markets immediately made up any ground that was lost in the beginning of the week and the major indexes finished as follow: The Dow Jones finished slightly down for the week, but it jumped from 27,677.79 on Thursday’s close to 28,010.87 on Friday’s close. The S&P 500 was up slightly for the week, as it opened at 3,140.53 on Monday and closed at 3,145.88 on Friday. Lastly, the Nasdaq Composite finished slightly lower as well, opening at 8,659.15 and closing at 8,656.53 on Friday. Considering where these indexes were, following Thursday’s close, investors seem to be thrilled about the markets following the job report.
On to the ETFG Quant Movers report this week, we will look at our 5 biggest % Gainers and % Losers. For % Gainers, our top five winners this week were IBB, SLYV, AADR, SLY and MDYG. They jumped 102.49%, 96.75%, 88.35%, 87.86% and 81.71% respectively. SLYV and SLY are ETFs that track the S&P Small Cap 600 Value Index, which is consistent with the strong showing the small cap industry has had over the past few months. Overall, when looking at small cap indexes such as the S&P 600 or the Russell 2000, we saw that on Friday they both neared 52-week highs, showing us that small cap has been enjoying a strong year, and possibly poised for a 2020 breakout.
Our top 5 ETFG Quant losers this week were SPFF, MLPC, MLPY, WBIG, PGX. They went down 39.75%, 34.22, 30.70, 30.52, 30.42 respectively. Two of these, MLPC and MLPY, track Master Limited Partnerships (MLPs) which mainly deal with transporting and storing natural resources such as gas or oil. Our model picked up that MLPs are continuing to have a rough year and it was no different this week. Midstream MLPs have been suffering from multiple factors this year, (one being lower demand for oil and gas, which we noted in our blog last week that news of a warm Winter is playing a factor in this as of late) and we are seeing record lows across the board, nearing 10% YTD drops.
Finally, we move on to the ETFG weekly select list. Comparing this week’s select list with last week’s, we will check 5 of the biggest positive movers this week in the Geography sector, all of which may offer upside potential. We see the top 5 ETFs to choose in this sector based on the list are: KGRN, IEUR, IVAL, SLY, and ILF.
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Assumptions, opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice.  ETF Global LLC (“ETFG”) and its affiliates and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively ETFG Parties) do not guarantee the accuracy, completeness, adequacy or timeliness of any information, including ratings and rankings and are not responsible for errors and omissions or for the results obtained from the use of such information and ETFG Parties shall have no liability for any errors, omissions, or interruptions therein, regardless of the cause, or for the results obtained from the use of such information. ETFG PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO ANY WARRANTIES OF MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE.  In no event shall ETFG Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of the information contained in this document even if advised of the possibility of such damages.
ETFG ratings and rankings are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell any securities or to make any investment decisions. ETFG ratings and rankings should not be relied on when making any investment or other business decision.  ETFG’s opinions and analyses do not address the suitability of any security.  ETFG does not act as a fiduciary or an investment advisor.  While ETFG has obtained information from sources they believe to be reliable, ETFG does not perform an audit or undertake any duty of due diligence or independent verification of any information it receives.
This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors.  Any opinions expressed herein are given in good faith, are subject to change without notice, and are only correct as of the stated date of their issue.  Prices, values, or income from any securities or investments mentioned in this report may fall against the interests of the investor and the investor may get back less than the amount invested.  Where an investment is described as being likely to yield income, please note that the amount of income that the investor will receive from such an investment may fluctuate.  Where an investment or security is denominated in a different currency to the investor’s currency of reference, changes in rates of exchange may have an adverse effect on the value, price or income.

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Assumptions, opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice.  ETF Global LLC (“ETFG”) and its affiliates and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively ETFG Parties) do not guarantee the accuracy, completeness, adequacy or timeliness of any information, including ratings and rankings and are not responsible for errors and omissions or for the results obtained from the use of such information and ETFG Parties shall have no liability for any errors, omissions, or interruptions therein, regardless of the cause, or for the results obtained from the use of such information. ETFG PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO ANY WARRANTIES OF MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE.  In no event shall ETFG Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of the information contained in this document even if advised of the possibility of such damages.

ETFG ratings and rankings are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell any securities or to make any investment decisions. ETFG ratings and rankings should not be relied on when making any investment or other business decision.  ETFG’s opinions and analyses do not address the suitability of any security.  ETFG does not act as a fiduciary or an investment advisor.  While ETFG has obtained information from sources they believe to be reliable, ETFG does not perform an audit or undertake any duty of due diligence or independent verification of any information it receives.

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This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors.  Any opinions expressed herein are given in good faith, are subject to change without notice, and are only correct as of the stated date of their issue.  Prices, values, or income from any securities or investments mentioned in this report may fall against the interests of the investor and the investor may get back less than the amount invested.  Where an investment is described as being likely to yield income, please note that the amount of income that the investor will receive from such an investment may fluctuate.  Where an investment or security is denominated in a different currency to the investor’s currency of reference, changes in rates of exchange may have an adverse effect on the value, price or income of or from that investment to the investor.

The information contained in this report does not constitute advice on the tax consequences of making any particular investment decision.  This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation of particular securities, financial instruments or strategies to you nor is it considered to be investment advice. Before acting on any recommendation in this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice.