ETF Outlook for Thursday, December 12, 2013
Market Vectors Solar Energy ETF (NYSE:
A fourth quarter revenue warning from SunEdison (NASDAQ:
) has the stock down over seven percent heading into the opening
bell. The solar stock is also announcing a debt refinancing
effort where the company plans to sell $800 million worth of
convertible senior notes. SunEdison is the number two holding in
KWT, making up 9.4 percent of the portfolio.
#PreMarket Primer: Thursday, December 12: US
Budget Deal Gaining Momentum
The big move after the announcement should have a direct
affect on the ETF today. The 14 percent loss in the last 5 weeks
for KWT looks to be extending lower.
iShares FTSE/Xinhua China 25 Index ETF (NYSE:
Yesterday the Chinese ETF suffered one of its worsts one-day
losses in months, losing 3.26 percent. The heavy volume day was
driven by a combination of mixed Chinese economic numbers as well
as the possibility of a taper in December.
The feeling is that the emerging markets will be hit hard when
the Fed begins to taper its monthly asset purchases. The ETF
should hold the $38 support level if investors want to keep a
bullish view. A close below $38 would be a breakdown and could
have the ETF retest support at the $36 area.
iShares S&P 100 Index ETF (NYSE:
The rumor that had been making its way around Wall Street last
week is not a reality. Facebook (NASDAQ:
) will be added to the S&P 500 and the S&P 100 indices
following the close on December 20. Alliance Data Systems (NYSE:
)and Mohawk Industries (NYSE:
) will also be added to the S&P 500. After hours, Facebook
was up over three percent and MHK is adding two percent.
With OEF only holding 100 positions it could be some movement
before and after the actual addition with investors positioning
Rydex CurrencyShares Euro ETF (NYSE:
The euro ETF closed a few ticks away from the best closing
price in two years on Wednesday. The continued fall of the U.S.
Dollar has been the culprit as of late. This could be considered
surprising considering the taper talk has begun in earnest
The beginning of a taper should be bullish for the greenback
and thus put pressure on the foreign currencies, but that has not
been the case the last week. Add in that the ECB is more likely
to have an accommodative policy in 2014 and it bears watching FXE
at resistance. A breakout above $136.75 would be a significant
move in the coming days.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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