Daily Market Snapshot 05 14 2012

Daily Market Snapshot         

The Bears overwhelmed the Bulls

The Daily Market Snapshot and the the Market Direction Model clearly illustrate the condition of the market. We are in the midst of a market correction.

Market Direction Model



Market in Correction



Trendline Analysis

Nasdaq Composite Analysis

The 2900 support level in the Nasdaq Composite has held to this point.

The Nasdaq Composite is now down more the 7% from its March high. We are due for a bounce, however, I think that the 2900 support level could be broken soon due to the market's current focus on headline news out of Europe. If the 2900 support line does not hold we should expect a further move lower.

We continue to maintain a very defensive posture in all GWM Model Portfolios.


Flexible Income Folio Highlight:

Flexible Income Folio

Featured Holding

Pimco Total Return ETF (BOND)

The Pimco Total Return ETF (BOND) has performed very well since it's March 1st inception. It is 300 basis points ahead of the original Pimco Total Return mutual fund (the world's largest fund).

From Investment News:

"Since the Pimco Total Return ETF (BOND) was launched on March 1, it has had a return of 4.14%, while the mutual fund version has had a return of 1.17%. The Barclays Aggregate Bond Index, the traditional benchmark for intermediate-term bond funds, has returned 0.03% over the same time period."

"The secret to the ETF's success is simple. At a little over $800 million, the ETF is free to invest in Mr. Gross' best ideas — and only those — while the mutual fund, with $258 billion in assets, is forced to invest more broadly."

“It's a high-conviction portfolio,” said Scott Burns, director of ETF research at Morningstar Inc."

Trendline Analysis

Pimco Total Return

PIMCO TOTAL RETURN (ETF symbol = BOND)

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