Market Overview

A Look Ahead: Next Week's ETFs To Watch

Well, this should be an interesting weekend following what can only be considered a bloodbath for the market this week. The debt ceiling imbroglio led to five losing days and sent the Dow Jones Industrial Average down more than 3% while the S&P 500 careened 3% and the Nasdaq appeared only moderately less bad with a decline of about 2.5%.

The clock is ticking on policymakers to reach an agreement with the August 2nd deadline looming large. They the alternative is a disaster of epic proportions and what ever party is saddled with most of the blame will likely send plenty of its denizens to the unemployment line come November 2012. With that, here are next week's ETFs to watch.

iShares Dow Jones U.S. Oil & Gas Exploration & Production Index Fund (NYSE: IEO): IEO and related ETFs have been beaten up this week with little just cause beyond the debt ceiling debate. If IEO pulls back to $70 and finds support there, that would be a solid entry point. Earnings from Apache (NYSE: APA), EOG Resources (NYSE: EOG) and Devon Energy (NYSE: DVN) should figure prominently in IEO's performance next week.

ProShares UltraShort Brazil (NYSE: BZQ): Once an emerging markets superstar, Brazil is now in bear market territory after its benchmark Bovespa Index tumbled 20% from its November highs this week. Long Brazil ETFs are hamstrung by the country's ineffective anti-inflation campaign and the slack performance of Petrobras (NYSE: PBR), indicating BZQ might be the best Brazil-specific ETF at this point. Buy above $17.

Market Vectors Coal ETF (NYSE: KOL): All things considered, KOL held up pretty well this week and most, if not all of the damage incurred can be tied to the debt ceiling issue. That may be a tell that KOL is poised to move once the issue is resolved. Several of the ETF's marquee constituents report earnings next week as well.

iShares MSCI Turkey Investable Market Index Fund (NYSE: TUR): Admit it. You know you want some emerging markets exposure. While Turkey's fundamentals have been shaken a bit, TUR is an alluring technical play at this juncture. Support looks firm at $55 and this volatile ETF can easily move 5% or more in a week. Put a stop back at $54 to give it some breathing room. If the $58 area is cleared, TUR probably returns to the mid-60s.

Posted-In: Earnings Long Ideas News Sector ETFs Broad U.S. Equity ETFs Short Ideas Specialty ETFs Emerging Market ETFs

 

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