Here are some notable ETFs worth taking a look at for
Thursday, October 10, 2013.
iShares MSCI United Kingdom ETF (NYSE:
The Bank of England announced it will keep its key lending
rate at 0.5 percent, the same level it has been since March 2009.
They will also keep in place the bond-buying program. Both
announcement were expected and had little affect on the local
stocks and currency.
However, EWU is interesting in that it is underperforming the
S&P 500 as well as its European peers. The ETF is down nearly
6 percent from the 5-year high set last month. That being said if
the ETF can hold the $18.60 level it could be setting up for a
sizable oversold bounce.
iShares MSCI Brazil ETF (NYSE:
Brazil's Central Bank raised their benchmark lending rate by
50 basis points to 9.5 percent in a move the was widely expected.
What was not expected is the language remained the same for the
next meeting. Many economists thought Brazil would begin to slow
the interest rate hikes designed to fight inflation, but the
central bank did not give that indication.
EWZ is set to open higher today on that news and the news
regarding the government shutdown. After rallying by 20 percent
in one month, EWZ has been consolidating between $48 and $50. A
breakout above $50 could trigger a new uptrend that should send
the shares to the mid-$50's.
SPDR S&P Biotech ETF (NYSE:
The bloodbath that is the biotech stocks continued yesterday.
XBI fell by 4.4 percent on the second highest volume of the year.
The ETF lost as much as 13 percent in three days before rallying
off the intraday lows yesterday. The sector has had several
research firms come out in defensive of the long-term
The support at $114 was held yesterday on the close and the
ETF is set to open higher this morning on the back of bargain
buying. Look for a few days of consolidation near the $114-$117
area and if XBI can hold it could be a rare chance to buy XBI on
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
Free Trading Education -
Check out the free events taking place on Marketfy
this week. Spaces are limited. Sign up today.