Dip-Buyers Are Piling Back Into The SPY

Analyst Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today points out massive surprising inflows to the world’s largest ETF, reversing several days of outflows.

SPY Investors Buying The Dip

Out of nowhere, heading into month’s end — into pivotal earnings for the market such as #1 weighted S&P 500 component AAPL’s release tonight after the market close — we have seen huge inflows into the SPDR S&P 500 ETF (NYSE:SPY) (over $8 billion in). This move reverses the trend we’d been seeing earlier this month of major outflows hitting the fund.

Market Technician David Chojnacki notes near term support levels in SPX including 2275, 2273, and 2250 below, which may prove even more important going into the first of the new trading month tomorrow. We have not seen inflows of this size since immediately following Trump’s election last November. We have traded as low as 2267 in the SPX in early trading today, only to rebound back to the 2273 level for the moment.

The SPDR S&P 500 ETF (NYSE:SPY) was trading at $226.78 per share on Tuesday afternoon, down $0.77 (-0.34%). Year-to-date, SPY has gained 1.45%, versus a % rise in the benchmark S&P 500 index during the same period.

SPY currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 109 ETFs in the Large Cap Blend ETFs category.

GLD Bets Paying Off Already

In other activity, we recently mentioned an appetite for upside calls in the largest gold-focused ETF, SPDR Gold Trust ETF (NYSE:GLD), and those appear to be well-timed trades given a >1% spike in Gold prices today.

The SPDR Gold Trust ETF (NYSE:GLD) was trading at $115.24 per share on Tuesday afternoon, up $1.27 (+1.11%). Year-to-date, GLD has gained 5.14%, versus a 1.44% rise in the benchmark S&P 500 index during the same period.

GLD currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #1 of 33 ETFs in the Precious Metals ETFs category.


Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.

About the Author: Paul Weisbruch

paul-weisbruchPaul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.

He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.

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