ETF Outlook For Wednesday, June 18, 2014 (QCLN, FXE, IAI, PTF)
ETF Outlook for Wednesday, June 18, 2014:
First Trust NASDAQ Clean Edge Green Energy Index ETF (NYSE: QCLN)
Recent strength in the solar stocks combined with a big rally in shares of Tesla Motors (NASDAQ: TSLA) has QCLN at the best level in months. The ETF finished yesterday with a gain of 3.4 percent and it is now up 15 percent in the last month.
With four pure play solar stocks in the top 10 holdings making up nearly a quarter of the portfolio, the ETF will tend to move with the niche energy sector. The other stock that tends to move QCLN is Tesla, which is the number three holding with an allocation of 7.6 percent.
The ETF appears to be on pace to retest the high of $22.00 in the coming weeks.
Rydex CurrencyShares Euro ETF (NYSE: FXE)
The move last week by the ECB has held down the euro versus the U.S. dollar and FXE has struggled to hold onto its multi-month low at the $133.50 area.
If the ETF were to close below $133.55 it would signal the lowest closing price since last November and could spur on more technical-based selling. Today could be the day that happens as the FOMC wraps up its two-day meeting with a Janet Yellen press conference.
iShares Dow Jones US Broker-Dealers Index ETF (NYSE: IAI)
One of the top performing sector ETFs on Tuesday, IAI closed up the day at 2.3 percent and broke out of a very bullish ascending triangle pattern. The move was led by big gains in its top holdings that include Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS) and Charles Schwab (NASDAQ: SCHW).
All of the top ten holdings gained at least one percent as money began to flow back into the sector. As volatility and trading volumes have dropped it has been a difficult time for the sector, but yesterday’s breakout was a significant move.
PowerShares DWA Technology Momentum ETF (NYSE: PTF)
News out yesterday that Oracle (NASDAQ: ORCL) was going to make a bid for Micros Systems (NASDAQ: MCRS) sent shares of PTF higher by 2.2 percent. MCRS is the ETF’s largest holding with a weighting of 6.5 percent.
The second largest holding is SunEdison (NASDAQ: SUNE), a solar stock that was up another three percent on Tuesday. The portfolio of 48 mainly small-cap and mid-cap stocks struggled during the pullback of high beta stocks, but has been stronger than ever the last few weeks.
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