ETF Outlook for Wednesday October 23, 2013
iShares Dow Jones US Aerospace & Defense ETF (NYSE:
Three of the top six holdings of ITA report earnings today so
expect the ETF to be on the move. Boeing (NYSE:
), General Dynamics (NYSE:
), and Northrop Grumman (NYSE:
) account for 20 percent of the ETF with BA the top holding.
The government shutdown affected sector more than most, but
after bouncing off the 50-day moving average the ETF is now
within 2 percent of an all-time high. The support level to watch
is $91 and the all-time high set in September is $97.05.
SPDR Consumer Staples ETF (NYSE:
The ETF is coming up on a critical level that should determine
the next move for a few weeks. XLP hit a new all-time high of
$42.20 in mid-May before pulling back for a few weeks.
The ETF has attempted to break through the resistance level
several more times since May and each time it has failed.
Yesterday the ETF closed at $41.92 and is within striking
distance of breaking out to a new high. Look for big moves in
Proctor & Gamble (NYSE:
) or Coca-Cola (NYSE:
), the ETF's two largest holdings if a breakout is to occur.
Guggenheim BRIC ETF (NYSE:
The BRIC acronym was synonymous with making money for many
years, until India and China began to slow and Russia and Brazil
ran into their own issues. But recently the four countries have
started to perk up again and are now trading at a new yearly
Most emerging market ETFs are doing well in the last few
months, but the EEB is in rare company with the new high
designation. The combination of attractive valuations and
potential growth in the coming years makes EEB an interesting
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