ETF Outlook for the week of January 13, 2014
First Trust NASDAQ Global Auto Index ETF (NYSE:
The International Auto Show begins on Monday in Detroit and
all major auto manufacturers will be there showing off their new
concepts. The auto stocks have been trading within a range for
the last four months after hitting a high in October.
The buzz around the auto show could spark some interest in the
sector and help propel it out of the trading range and to a new
high. A close above $40.25 would be the signal needed for the
breakout to be confirmed. The largest holdings in CARZ are
Daimler, Volkswagen and Toyota Motor Company (NYSE:
SPDR Financial ETF (NYSE:
The fourth quarter earnings season gets into full swing this
week with a barrage of large financial stocks reporting. On
Tuesday JPMorgan Chase (NYSE:
)and Wells Fargo (NYSE:
) are scheduled with Bank of America (NYSE:
) on Wednesday. Look for the big name financials to move the
sector throughout the week as investors react to the numbers.
KBB Says Vehicle Sales 'On The Cusp' of Returning
to Pre-Recession Levels
XLF is a basket of the largest financial stocks in the U.S.
with WFC and JPM the two largest holdings, making up 16 percent
of the portfolio. BAC is the number four holding at 6.7 percent.
The ETF is currently trading a few pennies from a multi-year high
and the next move will be determined by the earnings
announcements this week.
iShares S&P North American Technology-Multimedia
Networking ETF (NYSE:
A bullish article about Cisco Systems (NASDAQ:
) this weekend in Barron's should give the stock a boost on
Monday morning. The publication suggests the networking giant is
20 percent undervalued. The stock is the second largest holding
in IGN with an allocation of 8.4 percent. The long-term chart of
CSCO is not overly attractive and the stock has been in a
downtrend since August.
On the other hand IGN has been strong and is pulling back from
a multi-year high. If the second largest holding can get going
again it would be a big catalyst for IGN.
Market Vectors Retail ETF (NYSE:
The retail sector got a write-up in Barron's this weekend and
a few names were mentioned as bargain buys. With holiday sales up
3.4 percent this past year and not exciting many investors the
retail sector has been stagnant the last two months.
RTH is trading near the high, but needs to get some good
volume for a confirmed breakout. As investors begin bargain
hunting for stocks in the sector it could propel RTH above the
$61 resistance level. The largest holdings in RTH are Amazon.com
), Wal-Mart (NYSE:
), and Home Depot (NYSE:
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