Here are some notable ETFs worth taking a look at for
Wednesday, October 9, 2013.
SPDR Gold ETF (NYSE:
President Obama is expected to nominate Janet Yellen as the
next chairman of the Federal Reserve Wednesday. Most experts
believe Yellen will keep with Bernanke's strategy of quantitative
easing and that the easy money policy will continue seamlessly.
This should be viewed as a positive for gold because this type of
strategy will eventually lead to inflation.
However, gold is down 1 percent this morning. It bears to
watch GLD in the next few days to see how it reacts to the Yellen
nomination and the continuing government shutdown. As long as GLD
stays below $130/share the ETF remains in a very bearish
SPDR S&P Retail ETF (NYSE:
Two big-name retailers, Costco (NASDAQ:
) and Family Dollar (NYSE:
), reported disappointing earnings this morning and are selling
off in pre-market action. Both stocks are in the XRT, which fell
1.9 percent yesterday to its lowest level in a month.
The government shutdown appears to have a direct link to
consumer confidence, which is troublesome for the retailers and
spending habits. XRT should find support near the $77 area.
SPDR International Treasury Bond ETF (NYSE:
Spain and Italy are making big moves in the bond markets this
week by offering new paper. Italy will be issuing a 7-year bond
for the first time ever and Spain will be issuing its first
30-year bond in four years. Spain offered a 10-year note last
year that yielded 7.3 percent and today analysts expect the
30-year bond to go off around 5.1 percent.
The major difference shows the improvement (or at least
perceived improvement) in the financial state of the country. BWX
holds both Spanish and Italian bonds along with the U.K. and
Japan as its top countries. The ETF is trading just below a
multi-month high and currently yields 1.8 percent.
SPDR S&P 500 ETF (NYSE:
The ETF that tracks the S&P 500 index took a big hit
yesterday, falling 1.16 percent to close at a new one month low.
The heavy volume day has the ETF well below its 50-day moving
average and below price support. The next level of support is the
August low at $163/share.
If the ETF were to fall to the next support level it would
need to fall another 1.5 percent from yesterday's closing price.
An early morning bounce will likely greet investors today, but
that the only number that matters is where the ETF closes. The
first level of resistance will be $167/share.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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