Outlook for the Week of July 14, 2014
Last week the S&P 500 suffered a minimal loss of 0.5
percent, however the market saw pockets of big selling.
The small-cap stocks fell approximately 4 percent as money
came out of the higher beta stocks moved into either cash or
sectors that are perceived as being less risky.
also continued its fall and has now lost ground in 10 out of the
last 11 sessions.
on the other hand had a solid week and finished at its best
closing price in months.
iShares MSCI Germany Index ETF (NYSE:
The country won its first World Cup since 1990 by beating
Argentina by a score of 1-0. The country will now have to put its
focus back on the economy after the big win. The ETF is poised to
open higher this morning with most of the European ETFs after the
Nonetheless the manufacturing numbers out of Germany last week
showed the biggest drop in two years and have now declined for
three consecutive months. With the country's economy being the
largest in Europe and fourth largest in the world, the numbers
are critical to the recovery in the region.
Argentina ETF Rallying Into The World Cup
SPDR Financial ETF (NYSE:
The ETF was able to close in positive territory last week
after Wells Fargo (NYSE:
) kicked off earnings season for the banks.
On Monday morning Citigroup (NYSE:
) reported better bottom and top line numbers is poised to open
the week with a higher bid. On Tuesday JPMorgan Chase (NYSE:
) is expected to report earnings of $1.29, down from $1.60 last
XLF is sitting above support at the $22.40 area and
indications are it will open just below $23.00, a positive from
the chart perspective.
iShares Russell 2000 Index ETF (NYSE:
The diversified small-cap ETF fell by 2.3 percent last week
and is sitting just above its 50-day and 200-day moving averages.
The pullback is significant because it took place in a short
period of time and it was much deeper than its large-cap
The next few days will be critical for the asset class. If IWM
is to continue the current upward trend, it should hold the
$113.00 area. If IWM can hold the support level and either start
to rally or build a base it would be extremely bullish for the
near-term action in the ETF.
© 2014 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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