Natural Gas ETF To Face Pressure; Japan Inspires Bets On Casino ETF
ETF Outlook for Friday, June 27, 2014 (UNG, ECON, BIZD, BJK)
U.S. Natural Gas ETF (NYSE: UNG)
After the inventory numbers were released yesterday the price of natural gas tumbled. UNG closed the session down 2.7 percent at a new one-month low.
The ETF looks set to test important support at the $23.50-$24.00 area, which it has been able to hold since a breakout in January. Being able to hold support is bullish, but on the flipside the ETF has struggled to rally above $27 and eventually it must either fail to hold support or rally above resistance at $27.
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Market Vectors Gaming ETF (NYSE: BJK)
The casino stocks were on the move yesterday on positive news about the sector. Investors are hoping Japan will open the country to major casinos in a decision due this fall. On top of that, Macau continues to grow at approximately 10 percent year-over-year.
The chart shows BJK closing above the 50-day moving average for the first time since April and in the midst of breaking a downtrend. This is very bullish action for the ETF.
EG Shares Emerging Markets Consumer ETF (NYSE: ECON)
The emerging market stocks held up much better than the developed nations yesterday as the U.S. closed lower. ECON showed great relative strength with a gain of 0.9 percent to close within one percent of the best level since last October. Over the last few years ECON has been able to outperform the broader emerging market ETFs as the companies that cater to the local residents have found more success.
Market Vectors BDC Income ETF (NYSE: BIZD)
A big move by the niche sector yesterday sent all related ETFs higher.
Investors often invest in business development companies for the above-average income. The current dividend yield on BIZD is 8.0 percent, which is extremely attractive in a low-yield environment. The sector will be volatile due to the high dividend and when interest rates start to increase it could have a negative affect on the income stocks. That being said, interest rates have struggled to move higher and 8 percent is tough to ignore.
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