ETF Outlook for Wednesday, November 20, 2013
iShares Dow Jones U.S. Home Construction Index ETF (NYSE:
Wednesday at 10:00 AM the existing home sales for October are
released and the market expects the number to fall slightly from
September. The number should move ITB based on where it is comes
in versus the estimate of 5.2 million.
Retail sales for October are also announce at 8:30 AM and
could also have an affect on the ETF considering its exposure to
Home Depot (NYSE:
)and Lowe's (NYSE:
HD reported earnings yesterday and the stock gapped big before
closing the session with a gain of only 0.9 percent. ITB has
struggled this year with a gain of 7.0 percent and some good news
could once again get investors back in the housing sector.
#PreMarket Primer: Wednesday, November 20:
Bernanke Confirms That The Fed Will Put Off Tapering
Market Vectors BDC Income ETF (NYSE:
After closing at its best level of the year on Friday, BIZD is
trading two cents from the high after holding steady the last two
trading sessions. The ETF is a basket of business development
companies (BDCs) that offer loans to small and mid-sized
companies in exchange for typically high interest rates.
The ETF is yielding 7.4 percent and is one of the few income
ETFs that have held up in the rising interest rate environment.
This is due to its ties to the performance of the overall stock
market as well as interest rates. The key will be for BIZD to
hold above the $20.75 area on any pullbacks in the coming
Guggenheim Solar ETF (NYSE:
The parabolic rise of the solar stocks may have come to a
screeching hold this week as the losing streak for TAN has
reached four sessions. But do not panic yet, as the ETF did
suffer a similar sell-off in late October before rallying 10
percent in the next two weeks to a multi-year high.
The sector was driven by a 5.8 percent drop in Trina Solar
) yesterday after initially gapping up higher. Widely followed
First Solar (NASDAQ:
) lost 3.9 percent and is now down six percent in the last three
trading days. It will be important for TAN to hold the support
area at $36.30 this week if it wants to keep the momentum
United State Natural Gas ETF (NYSE:
The rally attempt by UNG two weeks ago off important support
at the $17 area appears to be losing steam the last two days. The
ETF is down 2.7 percent this week and yesterday it closed on the
low of the session.
If the trend continues as it has for the last few months it
does not look good for UNG. If the $17 area is broken in the
coming days it will spark a new sell signal and investors in UNG
will hear the "look out below" advice from the charts.
(c) 2013 Benzinga.com. Benzinga does not provide investment
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