Market Overview

A Look Ahead: Next Week's ETFs To Watch

Mr. Market's pain train was running at full steam this week as Europe (what else?!) and slack economic data here in the U.S. (again, what else?!) combined to send stocks and anything else that could be viewed as a risky asset (we're talking about you, oil) tumbling.

Safe havens? That phrase as a plural is somewhat of a stretch, but there a couple and they are indeed the usual suspects. Let's get on with some weekend reading and have a look at next week's ETFs to watch.

ProShares UltraShort Europe (NYSE: EPV): There really is no reason to be long Europe at this point. That strategy is nothing more than a death-wish. An unidentified European tapped the European Central Bank's emergency fund this week for $500 million, the first time any bank has done that since February. The European banks that operate in the U.S. are getting heat from the Federal Reserve about capital reserves. And on and on. More bad news out of Europe could send EPV to resistance just below $64 and beyond next week.

Direxion Daily Latin America 3X Bear Shares (NYSE: LHB): Like Europe, the path of least resistance in Latin America right now is down. Name a major index from Mexico to Chile, from Peru to Brazil, and chances are it's in tailspin. Analysts and technicians are forecasting a retest of the August lows for major LatAm indexes and if those lows don't hold as support, watch out because a blood-letting will ensue. LHB could retest its highs in the $28-$29 area on continued LatAm weakness.

Mining ETFs: OK, so we had to breakdown and give you some good news. Certainly less bad and arguably pretty darn good when it comes to equity-based ETFs these days, gold and silver miners participating in the upside of the underlying metals. Embrace the Market Vectors Gold ETF (NYSE: GDX), the Market Vectors Junior Gold Miners ETF (NYSE: GDXJ) and the Global X Silver Miners ETF (NYSE: SIL) if you must be long equity ETFs in this environment.

iShares Silver Trust (NYSE: SLV) and the iShares COMEX Gold Trust (NYSE: IAU): Yes, these ETFs are making regular appearances on this and they are the Professor's preferred way of gaining exposure to physical silver and gold. You can opt for rival funds and get the same result, but theme is what's important and that is gold and silver are safe havens and both metals are headed higher. Period.

Posted-In: Long Ideas News Sector ETFs Broad U.S. Equity ETFs Short Ideas Specialty ETFs New ETFs Emerging Market ETFs

 

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