ETF Outlook for Tuesday, December 3, 2013
Market Vectors Gold Miners ETF (NYSE:
The price of gold continues to fall as it closed at the lowest
level since July. The SPDR Gold ETF (NYSE:
) finished yesterday down by 2.4 percent as the allure of the
precious metal is disappearing quickly.
Matt McCall's Interview on PreMarket Info
The gold miners have been hit even harder as GDX fell to the
lowest level in five years yesterday. The ETF is now down 55
percent in 2013 after falling 6 percent yesterday. Investors
unwilling to give up on gold as a long-term investment better be
hoping for the metal to hold the July lows. A breach of the July
lows could send down to the $1,000/ounce level in the coming
iShares MSCI Emerging Markets Index ETF (NYSE:
The emerging market stocks have been attempting to rally into
the end of the year to salvage one of its worst years of the last
decade. Monday was not a good start for the sector as EEM fell
2.1 percent to close at a new two-week low.
Good economic news out of the U.S. could leader to a Fed taper
sooner rather than later, which is viewed as a negative for the
emerging markets. Other interest rate sensitive sectors also
traded lower as interest rates increased.
iShares 20+ Year Treasury Bond ETF (NYSE:
The rise in the interest rates across the board had fixed
income ETFs on the defensive on Monday. Strong economic data
could put pressure on the Fed to begin tapering sooner rather
than later and inevitably pushing bond prices lower and interest
Amazon, Drones & ETFs (AMZN, ROBO, AVAV, ITA,
TLT, which is composed of long-date U.S. Treasuries lost 1.1
percent on Monday and is not far from closing at the lowest level
since the third quarter of 2011. Keep in mind that a large number
of fixed income ETFs traded ex-dividend yesterday, as they always
do on the first trading day of the month.
Market Vectors Coal ETF (NYSE:
Late Monday, comments from the EPA hit the wires and helped
momentarily push up coal stocks. A member of the EPA said the
agency would give states significant flexibility when it comes to
meeting the new carbon emission requirements from power
The proposed standards are scheduled to come next June. The
coal stocks have been under pressure from an administration that
is pushing the green initiative. KOL is down 21 percent this year
even though it is well off the August lows.
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