ETF Outlook For The Week Of May 26, 2014 (XLK, GDX, GEX, RSX, AAPL)
ETF Outlook for the Week of May 26, 2014
SPDR Technology ETF (NYSE: XLK)
Investors and analysts alike have been pounding the table insisting that the high-flying technology stocks are dead. While it may be true that a handful of them suffered a minor setback in the last two months, overall the technology sector has been stronger than ever.
XLK is a basket of 73 stocks that is highlighted by old-school names such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Verizon (NYSE: VZ). The ETF is diverse with its holdings spread throughout the technology landscape.
Last week the ETF gained 1.8 percent and closed at the highest level in 13 years. The ETF is on a buy signal and should continue to see higher prices in the months ahead.
Market Vectors Gold Miners ETF (NYSE: GDX)
The basket of global gold miners did not have a terrible week, losing 0.5 percent, but it was enough to have the ETF close at the lowest level since February.
GDX has a similar chart to the price of gold, as both have been trading in a narrow range for the last two months. The red flag for GDX is that even though it has been holding above the $23-$23.50 area for two months, each rally is falling shorter of the previous rally. This has created a descending triangle pattern that if broken (a close below $23) will generate a major sell signal.
Market Vectors Global Alternative Energy ETF (NYSE: GEX)
The ETF had a solid week, gaining 4.8 percent and closing at the best level in a month. Not only is the ETF up five of the last six days, it also broke a short-term downtrend channel that began in March. The breakout coincided with the ETF moving back above its 50-day moving average.
Technically speaking, GEX is setting up for a retest of the early March high at $65/share.
Market Vectors Russia ETF (NYSE: RSX)
Another 5.4 percent gain last week has the Russian ETF back at the best level in three months. The Market Vectors Russia Small-Cap ETF (NYSE: RSXJ) was up even more with a gain of 8.6 percent for the week. The news over the weekend that the Ukraine election had been decided appears to be bullish for both countries as their respective stock markets were higher on Monday.
Another country in the midst of an important election is Egypt, where it appears the military leader will win the election. The Market Vectors Egypt ETF (NYSE: EGPT) has been muddling around after a rally that had the shares nearly double in the last year. It will be important to watch the action over the next few days when it comes to EGPT.
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