ETF Outlook for Wednesday, April 16, 2014
Market Vectors Semiconductor ETF (NYSE:
The ETF's largest holding, Intel (NASDAQ:
), reported earnings Tuesday night after the bell that came in a
penny better than expectations. Revenue was in line with
consensus, an increase of 1.7 percent year-over-year.
The numbers were good enough to send the stock higher by a
dollar after the announcement. The stock makes up 18 percent of
the ETF and will have a direct impact on how SMH trades
throughout the day. Because INTC is a heavily traded stock,
expect volatility between the opening and closing bell as
investors digest the quarterly numbers.
iShares U.S. Regional Bank ETF (NYSE:
Before the opening bell today the two largest holdings of the
ETF, which make up 32 percent of the portfolio report quarterly
earnings. U.S. Bancorp (NYSE:
)andPNC Financial Services (NYSE:
) are on the earnings docket. Both stocks have recently pulled
back and have brought down the ETF with them. IAT is down over
five percent from the multi-year high it set in March.
Inverse ETFs Offer Traders A Profitable Edge On
Over the last three trading sessions the ETF has begun to form
a consolidation pattern that could be a signal the short-term
pullback is over and a new uptrend is set to begin. Wednesday's
earnings will determine if a new uptrend is ready to
SPDR S&P Biotech ETF (NYSE:
The biotech ETF is now down 28 percent from an all-time high
set just two months ago. On Tuesday, XBI closed higher by 0.2
percent, but it was eight points off the low of the session. The
$114 area has been significant for XBI over the last year, as it
has acted as resistance as well as support during several
The low yesterday was $115.31, bringing the ETF down once
again to the support area. With an RSI reading well into oversold
territory at 17 and the ETF bouncing off support there is a high
probability XBI has found its short-term support and will bounce
in the coming weeks.
iShares MSCI Singapore Index ETF (NYSE:
The Southeast Asian country has been attempting to move out of
bear market mode and on Tuesday, it led the emerging markets with
a gain of 1.3 percent. EWS is now up over 12 percent from the
February low and trading at the best level since December of last
year. The ETF is heavily invested in the large financial stocks
in the country.
If the trend continues, EWS is setting up for a big 2014. The
ETF has been alternating negative years with big gains in the
following year since 2010 and after a negative return this year
the ETF could be poised to make investors happy.
© 2014 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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