ETF Outlook For Wednesday, June 11, 2014 (GXG, GDXJ, SOCL, SPPP)
ETF Outlook for Wednesday, June 11, 2014
Global X FTSE Colombia 20 ETF (NYSE: GXG)
The fourth largest country in Latin America checked in with solid growth of 4.3 percent in 2013. The growth is not expected to slow anytime soon as the government continues to quell violence and looks to expand the nation's infrastructure system.
The ETF has broken out recently, gaining 3.4 percent over the last week. The ETF is now sitting at the best level since last November. The next level of resistance will be in the $23-$24 area.
Market Vectors Junior Gold Miners ETF (NYSE: GDXJ)
A 4.5 percent rally Tuesday has the ETF back above its 50-day moving average for the first time since March. The rally also broke the ETF out of a narrow downtrend it had been trading in since March.
The key for the breakout to continue is for GDXJ to remain above the $35.50 area for a few days. That would confirm that a more significant up trend is forming. If the breakout does not hold, the odds of the ETF continuing its downtrend increase dramatically.
Global X Social Media ETF (NASDAQ: SOCL)
The market was flat Tuesday, however the “high flying” technology stocks were able to continue the rally. After taking a massive beating earlier this year, the niche technology stocks are in the midst of a comeback.
SOCL was up 1.04 percent Tuesday to close at the best level in six weeks and extend its winning streak to five sessions. It appears the selling in the social media sector was overdone and investors are realizing the long-term growth potential.
Sprott Physical Platinum and Palladium Fund (NYSE: SPPP)
The basket of platinum and palladium has been outperforming all other metals this year and over the last 12 months. Tuesday, the ETF closed up 1.5 percent to a new 52-week high.
As gold has struggled with a multi-year down trend SPPP has been moving in the opposite direction. The reason behind the move has been the action in palladium the last six months. The ETFS Physical Palladium Shares (NYSE: PALL) is hitting a new all-time high and is up 20 percent in 2014. Platinum has been holding its own versus gold, but lagging palladium.
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