Outlook for Thursday, July 10, 2014
Investors should be ready for one of the worst opens this year
for the stock market after a bevy of negative economic data from
around the world hit the wires overnight.
Global X FTSE Portugal 20 ETF (NYSE:
The Portuguese stock market was down another 4 percent last
night after the country's largest listed bank, Banco Espirito
Santo, fell by 16 percent amid rumors its parent is considering
bankruptcy protection. Over the last 7 trading days the stock
market in Portugal is down 11 percent and the ETF has followed
PGAL is set to open lower by another 2.5 percent this morning,
which would drive the ETF to the lowest level since February.
3 ETFs Holding Strong During The Pullback
SPDR Gold ETF (NYSE:
ETF is set to open at its best level since March and the
underlying yellow metal is up about $20 per ounce this morning.
The heavy selling in Europe has led to fears of a contraction in
the continent and send investors into gold as a safe haven
investment. The move today is a new short-term breakout and could
send the ETF to the $135 area, from the $127.84 close of
SPDR S&P 500 ETF (NYSE:
The broad market ETF is set to open lower by about 0.8 percent
at the lowest level in a week. The panic will be rampant as the
doomsday bears make their way back into the media calling for the
bursting of the bubble. This crowd has been wrong for years and
is likely wrong again as there are no signs of a bubble about to
There is a good case the market is due for a pullback
considering the SPY has only had two three-day losing streaks
since February, and the largest pullback since April was the four
percent weeklong sell-off in the beginning of the month.
Look for SPY to close lower today, unless something dramatic
happens, and watch the following support levels: $194.25,
$193.00, and $190.42. A pullback to the lowest support level
would result in a 4 percent pullback from the all-time high. In
the grand scheme of things a 4 percent pullback is like hitting a
small speed bump.
© 2014 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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