ETF Outlook for Thursday, December 19, 2013
Rydex CurrencyShares Japanese Yen (NYSE:
After the Fed taper announcement the pressure on the Japanese
yen increase and the currency is not at its lowest level versus
the U.S. dollar since 2008. It appears the Bank of Japan is now
the central bank that will be able to devalue its currency with
the greatest success.
The move by the Fed will give the central bank less power in
artificially keeping the value of the greenback lower. Shares of
FXY fell by 1.4 percent on Wednesday and there does not appear to
be any significant support for the ETF in the area.
SPDR Gold ETF (NYSE:
The immediate reaction after the Fed announcement was positive
for gold as it rallied one percent from the low of the session.
The gains did not hold and investors realized that if the
precious metal could not rally with help from the Fed, it would
have an even more difficult time with the taper underway.
#PreMarket Primer: Thursday, December 19: Fed
GLD finished lower by 0.8 percent and is now only six cents
above the low set in early December. More weakness Thursday will
have the ETF at a multi-month low and in danger of breaching the
multi-year low set in late June of this year.
SPDR Financial ETF (NYSE:
The Fed announcement sent stocks of nearly every sector higher
yesterday, but one of the big winners were the financial stocks.
When the closing bell rang Wednesday, XLF was higher by 2.4
percent after being in the red at one point.
The ETF finished the day at the highest closing price in over
five years as investors realized a slow taper was good for stocks
and in particular the financials. Not only was the breakout
positive for XLF, but also the volume at which the ETF hit a new
high yesterday was the best in months.
First Trust Dow Jones Internet Index ETF (NYSE:
The technology stocks and the NASDAQ Composite were the
hardest hit sector yesterday before the Fed announcement. FDN was
able to rebound with turnarounds in their biggest holdings from
losses to gains by the end of the day.
The likes of Google (NASDAQ:
) and Amazon.com (NASDAQ:
) led the way for FDN to end the day up 1.3 percent at a new
all-time high. Look for more gains for the ETF as it is clearly a
leader not only technology, but in the overall market.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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