May has passed, but the selling probably hasn't. The calendar
says we're only at the beginning of the what is usually the worst
six-month period to own stocks in. With elections in Greece and a
potentially disappointing Federal Open Market Committee meeting
looming on the near-term horizon, there are perhaps more reasons
to buy than sell.
And things may not get much better once June concludes. July
is usually the best month of the third quarter for stocks, but
the seventh month of the year is particularly unkind to the
Nasdaq as the July-October time frame is the Nasdaq's worst.
All of that is enough to make some folks want to run and hide,
but don't fret because there are some ETFs that can provide cures
for the summertime blues.
Direxion Daily Gold Miners Bull 3X Shares (NYSE:
Those that are strong believers in seasonal trends know that
gold's bullish seasonality is about to kick in a few weeks. There
is a chance that gold demand tied Indian wedding season may be a
bit of disappointment this year given the macroeconomic headwinds
in India, the world's largest gold consumer. Gold perked up in
earnest on the back of the dismal May jobs report last Friday,
but has since meandered to the downside.
The losses over the past two days haven't been alarming and it
should be noted that in recent days, the miners, not bullion have
been the leadership group in the precious metals complex. Even
with Tuesday's decline of 1.2%, NUGT is up more than 14% in the
past week, proving our
thesis right that this ETF can easily deliver
double-digit gains in less than a week
First Trust NYSE Arca Biotech Index Fund (NYSE:
Biotech stocks have been in their own bull market this year, but
they haven't been impervious to broader market weakness in recent
weeks. In the past week, FBT, the biotech ETF stalwart in 2012,
has fallen 4.5% and fallen below its 50-day moving average.
While we reiterated a generally bullish view on FBT's
constituents and the ETF itself as the preferred way of playing
new drug approvals and increased biotech mergers and acquisitions
activity, FBT's 8.43% weight to Vertex Pharamceuticals (Nasdaq:
) is an issue. That stock is FBT's largest holding and the
problems related to its cystic fibrosis
Vanguard Telecom Services ETF (NYSE:
Yes, the Vanguard Telecom Services ETF is type of ETF that your
grandparents might own and if they don't like ETFs, they're
probably not averse to holding high-yielders such as AT&T
) and Verizon (NYSE:
). Kidding aside, health care, staples and utilities garner most
of the attention when it comes to defensive sectors, but telecom
can't be ignored. VOX, which yields over 3%, has outperformed the
S&P 500 and the iShares Dow Jones US Telecom Fund (NYSE:
) over the past month and year-to-date.
PowerShares Dynamic Leisure & Entertainment Portfolio (
) One of the better ETF
plays on the summer travel season
, PEJ and its holdings are coming into a pivotal time of year.
The summer travel season is vital for the likes of Priceline.com
) and Walt Disney (NYSE:
). Along with other lodging firms, PEJ is also heavy on casual
dining and fast food companies. Said differently, the ETF's
mettle could be tested in the coming months, or it could be a
surprise performer to the upside if the economy starts perking up
(c) 2012 Benzinga.com. Benzinga does not provide investment
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