ETF Outlook for Tuesday, January 7, 2014
iShares MSCI Ireland Index ETF (NYSE:
The first bond auction for Ireland since the country's exit
from the EU bailout plan turned out to be better than most
expected. The country was planning on selling $3 billion Euro in
10-year debt. The indications were that demand was upwards of $9
billion euro, well above expectations.
The strong demand helped push the yield on the 10-year bond
down nine basis points to 3.26 percent. This is well below the 15
percent the bond was yielding at the height of the crisis in
2011. EIRL was a big winner last year with a gain of 43 percent
and all indications are that the turnaround in Ireland will
United States Natural Gas ETF (NYSE:
With record cold temperatures gripping a large portion of the
country, the demand for natural gas has increase exponentially.
Over the last month there have been some nasty cold spells that
have hit everywhere from the Northeast to the South and in
ETF Outlook for the Week of January 6
The price of natural gas is often driven by extreme weather
and the current situation is no different. UNG rallied to end
2013 with a gain of 9.5 percent and has recently pulled back from
a multi-month high. Look for the ETF to open higher today with
traders concentrating on the current freezing temps.
iShares U.S. Broker Dealers ETF (NYSE:
) to a hold and is sending the stock down nearly 2 percent in
pre-market trading. The broker-dealer is the number three holding
in IAI and could have a ripple affect on the other stocks in the
Look for IAI to be on the defensive when the market opens this
market and have trouble keeping up with the other financial ETFs.
The main reason for the downgrade was valuation, SCHW was up 70
percent last year.
iShares Cohen & Steers REIT ETF (NYSE:
The major stock indices closed lower for the third consecutive
session yesterday to begin the year. One sector that was able to
attract some buyers was the REITs. Even though most investors are
concerned about rising interest rates and what it may do to
high-income investments such as REITs, there was some buying
The ETF is at a critical level on the charts. ICF closed
yesterday at $75.69 after trading down to $74 to begin the year.
The $73-$74 area is major support for the ETF going back several
years. If ICF were unable to hold support it would be a major
sell signal for the entire sector.
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