ETF Outlook for the week of December 2, 2013
Global X FTSE Greece 20 ETF (NYSE:
Ratings agency, Moody's, sees a cyclical recovery in Greece's
economy and has upgraded the country's rating by two notches to
Caa3 from C. Moody's expects the country's GDP to fall by 0.5
percent in 2014 before moving back to growth mode in 2015 with a
forecast for a gain of 1.0 percent in the economy.
GREK is up 26.6 percent this year and is trading just below a
multi-year high. Based on valuations alone, GREK is a bargain
even though it has a big gain this year. The move over the
weekend could add to the gains on Monday.
iShares MSCI Israel Capped Market Index ETF (NYSE:
Fitch reaffirmed Israel's A rating and ups the outlook to
positive, the reason for the upgrade is a falling deficit. The
ratings agencies do not carry the same clout they had before the
financial crises, but the move still may have an affect on the
ETF Monday morning. In 2013, EIS is up 15 percent and is trading
at a new two-year high.
Wide Range of ETFs Hitting New Highs (EWN, NLR,
EIS, ING, TEVA)
With 24 percent of the ETF being in one stock, Teva
), the ETF does not offer true diversification into the country.
However, it is one of only two ETFs that focus on the country.
The other ETF to watch is the Market Vectors Israel ETF (
iShares MSCI Thailand Investable Market Index ETF (NYSE:
The protests in Thailand escalated this weekend as there are
now four people reported dead. Over the weekend protestors
stormed the PBS station in the country and a government
Shares of Thai stocks have underperformed this year along with
the entire Southeast Asia region. THD is down 11 percent this
year and with the protests not appearing to be slowing anytime
soon it could send the ETF further into negative territory.
Market Vectors Retail ETF (NYSE:
Black Friday is in the books and Cyber Monday will kick off
the week. These are two of the busiest shopping days of the year
for the brick and mortar and online retailers. According to
ShopperTrak, sales on Black Friday increased by 2.3 percent from
last year. The number could have been hurt by a number of large
retailers that were open on Thanksgiving day for the first
Where is the Bottom for Gold Miners? (GDX, GDXJ,
The research firm believes sales for the entire holiday season
will increase by 2.4 percent year-over-year, the slowest growth
since 2009. Overall the numbers are basically inline with
estimates and it could be enough to draw investors into the
sector. Other retail ETFs to watch include the SPDR S&P
Retail ETF (NYSE:
) and PowerShares Retail ETF (NYSE:
SPDR S&P 500 ETF (NYSE:
The ETF hit a new all-time high intraday on Friday before
finishing the holiday-shortened trading session down 0.1 percent.
The volume was low and the significance of the move on Friday is
not really high. However, the chart of SPY shows an index that is
slowing as it hits highs and could be setting up for a normal
The RSI indicator recently generated a crossover sell signal,
which has a good track record for predicting short-term tops. A
pullback to the 50-day moving average and price support at the
$174.50 area could constitute a 3.5 percent pullback from
Friday's close of $181.00. Investors should be prepared for a
pullback in the next couple of weeks and the level to watch is
the moving average and support line.
(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.