ETFs to Watch for Tuesday October 22, 2013
First Trust Cloud Computing ETF (NYSE:
The ETF could be on the move today after the third largest
holding reported earnings after the bell last night. The online
content giant, Netflix (NASDAQ:
), reported earnings that beat expectations and that sent the
stock higher by 10 percent after hours. SKYY closed at its best
level ever yesterday along with NFLX and both should see
continued buying today. The top two holdings in the ETF are
) and Brightcove (NASDAQ:
), both are trading near their yearly highs.
Global X China Consumer ETF (NYSE:
The niche international ETF has quietly broken out of a
bullish pattern to a new 2-year high. The close above $16.24 was
a breakout above a triple top pattern that goes back to last
The ETF is up 10 percent in 2013 and lagging the S&P 500
and many of its international peers, but the recent action has
been swung the ETF back into bullish territory. By focusing on
companies that sell good and services to the local Chinese
citizen, the ETF benefits from the emergence of the middle class
in the country. The top sectors include retail, automotives,
food, and household goods. The key level to watch is the old
resistance level of $16.24.
Guggenheim Solar ETF (NYSE:
Yesterday one of the biggest gainers was solar company First
) with an increase of 8 percent. The move helped push TAN to the
best level in over two years as investors are warming up to the
beaten down industry.
The ETF is up 156 percent in 2013, but remains down 65 percent
from its all time high set in early 2010. The trend is clearly
higher for the volatile ETF, but investors should be cautious
chasing the industry after the huge gains this year. FSLR makes
up 5.8 percent of the ETF and is the third largest holding in the
iShares MSCI Canada Index ETF (NYSE:
Canadian stocks have not been able to regain their previous
highs as the S&P 500 has been able to do in the last few
days. As a matter of fact, EWC is down 17 percent from its 2007
The good news is that the ETF is within striking distance of a
major breakout to a multi-year high. A close above $29.64 would
break a quadruple top pattern and signal a new buying opportunity
for investors. Failure would likely send the ETF back to support
at the $27 area.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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