Technology, Energy and Inflation Protected ETFs To Watch This Week

After a late-week bounce altered the momentum of the market, traders will be closely watching stocks in the days ahead to see if this is more than just a brief rally attempt.

The week ahead features the release of monthly inflation data along with further housing statistics.

In addition, markets will be keying in on another round of earnings announcements from technology heavyweights Apple Inc AAPL and International Business Machines IBM.

Here are the key ETFs to watch for the week starting October 20:

Technology Select Sector SPDR XLK

The high profile earnings announcements for both Apple and IBM will put technology ETFs in the crosshairs early this week.

Both companies are in the top five holdings of XLK and can make a significant impact on tone of the overall market with a successful quarter or guidance outlook.

Related Link: VIX ETFs Become Heavily Favored

XLK briefly dipped below its 200-day moving average last week and then subsequently rebounded higher by Friday’s close. This sector benchmark has been a steady performer all year and is still clinging to a 6.74-percent return in 2014.

SPDR S&P Oil & Gas Exploration & Production ETF XOP

The energy sector has come under fire over the last several months as a drop in crude oil prices has sent shares of oil-related companies tumbling. One industry group that has moved into oversold territory are exploration and production companies as represented by XOP.

This ETF tracks 91 stocks with total asset of more than $1.3 billion. 

XOP has fallen more than 40 percent from high to low this year as oil prices have cratered. However, a new rally has briefly materialized in this industry group that will be closely watched for additional follow through in the coming weeks.

iShares TIPS Bond ETF TIP

Traditional Treasury and investment grade bond corporate bonds have recently risen to new highs on the back of a flight to safety caused by stock market volatility.

Related Link: Treasury And Mortgage Bond ETFs Hit New Highs

However, the breakout in bonds has not materialized in the same manner for the inflation protected securities contained in TIP.

This ETF is still languishing below its August high and has yet to spark significant interest from income investors looking to add inflation protection.

The release of the monthly Consumer Price Index (CPI) on Wednesday along with further interest rate fluctuations will play a key role in the price action of TIP moving forward.