Markets rose in Tuesday trading as hopes for Federal Reserve
intervention continued to drive stocks. Additionally, market
participants boosted their purchases thanks to positive reports out
of Europe and strong U.S. housing data which showed that housing
permits beat consensus estimates and continued the trend
Thanks to this, major indexes were higher across the board with
the Dow gaining 0.75% while the S&P 500 and the Nasdaq added,
respectively, 1% and 1.2% in Tuesday trading. Strong performances
were seen in much of the basic materials market, while health care,
financials, and conglomerates also gained. On the downside,
investors saw telecoms and staples slump along with utilities.
Bond and currency markets continued to tilt away from America as
the U.S. dollar index fell by about 0.50, thanks to weakness
against the euro. Meanwhile, most short-term bonds were flat but
investors did see weakness in the middle and long parts of the
curve as the 10 year note saw yields rise to the 1.62% mark.
Commodity markets, on the other hand, were more positive,
spurred by the weakened dollar and strong performances in the
agricultural market. While energy and metals were mixed, every
major agricultural product gained on the day, led by a 6.4% move
higher in orange juice, and then 4.8% moves in coffee and corn
USCF Debuts New Metals ETF
For ETF trading, investors saw light volume in many of the
market's biggest equity products while a number of sector and
leveraged sector funds also saw light activity as well. On the
other hand, currency funds, international sector products, and
country specific ETFs did see a greater level of interest than many
of their counterparts heading into mid-week trading.
In particular, investors saw a spike in interest for the
Consumer Staples Select Sector SPDR (
. This product usually sees volume of about 5.4 million shares, but
saw a surge to just under 14 million during Tuesday trading (see
The Comprehensive Guide To Consumer Staples
OptionMONSTER also noted
that the product also saw a huge amount of interest from an options
perspective as well. The firm said that a trader sold about 25,000
January puts, betting that XLP would hold up above $32 until then
(its current price is around $34.39).
Clearly, the product which has double-digit exposure to firms
, is becoming an even more popular tool for investors as the
economic environment remains uncertain and these securities hold up
better than most.
Another fund that saw a big bump in volume was the
iShares MSCI Brazil Index Fund (
. The ETF usually trades about 16 million shares in a normal
session but spiked to just over 28 million in Tuesday's session
free ETF Report on EWZ
Interestingly, investors didn't see the same bump in other
Brazil ETFs which are more spread out among their assets like BRF,
and instead focused on EWZ and other commodity intensive funds.
This product puts more than one-third of its assets in basic
materials and energy so today's move higher in these commodities
was a big boost for some of Brazil's main exports and helped EWZ to
jump more than 3.65% on the day.
(see more in the
ISHARS-BRAZIL (EWZ): ETF Research Reports
SPDR-CONS STPL (XLP): ETF Research Reports
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