ETF Outlook For Thursday, June 19, 2014 (GDXJ, BRXX, EWZ, RSX, XLU)

ETF Outlook For Thursday June 19, 2014

Market Vectors Junior Gold Miners ETF GDXJ

Even though gold closed yesterday with a small gain, the gold miners were up big as they continued a month-long rally. GDXJ is a basket of junior gold miners that typically have a smaller market capitalization and often are considered risky investments.

The ETF was up 4.6 percent yesterday and it closed at the best level since March. Adding to the bullish chart is an increase in volume that indicates the buyers are in control. The next significant resistance level is the $46 area.

EG Shares Brazil Infrastructure ETF BRXX

The soccer World Cup has been successful so far for Brazil and the country’s stock market appears to be following the country’s lead.

Related Link: Brazil ETFs Rally Into The World Cup

The iShares MSCI Brazil Index ETF EWZ finished yesterday at the best closing level of the year after gaining 2.15 percent. However, BRXX outshined EWZ with a gain of 3.6 percent as it also closed at the best level of 2014. Both ETFs are in the midst of breakouts--after lagging their peers for most of the year, they are now the leaders.

Market Vectors Russia ETF RSX

The Russian ETF has now proven that it is in the midst of a new bull market. A bull market is when an ETF is up at least 20 percent from a low. Since the low in March, RSX is up 27 percent and yesterday it closed at the best level since January. On a valuation basis, Russia remains attractive as a long-term investment. That being said, the country is not completely out of the woods with the Ukraine situation.

SPDR Utilities ETF XLU

The best performing of the major sectors yesterday was the “boring” utilities. XLU finished the day up 2.3 percent at the best level in over six years. The move back into the lower volatility sector has been led by the thinking that interest rates will remain low after the FOMC statement yesterday and that utilities pay above-average income to investors. When it comes to finding income in this market it is difficult and investors are looking at all possible vehicles, including utilities.