Market Overview

A Look Ahead: Next Week's ETFs to Watch

That was a nice way to end the week as a batch of good earnings reports and hopes that real progress is being made in Europe sent the S&P 500 higher by 1.9%. The Dow Jones Industrial Average finished the week in fine form with four straight gains and a 2.3% jump on Friday alone.

Ahead of a crucial meeting Sunday in Brussels, European policymakers agreed to direct more bailout funds to Greece while acknowledging the country's debt is still far too high. In other words, this weekend will be like so many others over the past 18-24 months: Investors will be watching the news for headlines out of Europe and taking their cues from those headlines come Monday morning.

Even with Europe looming large, next week brings a slate heavy with quarterly earnings reports and with that we have plenty of ETFs to take a look at in anticipation of Monday's opening bell.

Vanguard MSCI Europe ETF (NYSE: VGK): The Vanguard MSCI Europe ETF has a way of creeping onto these lists seemingly every week, but this is not the week to leave this fund out. VGK tacked on almost 3.4% on Friday and as long as the 50-day moving average just below $44 acts as support, there are reasons to give this fund a look from the long side. Any good news to emerge from Brussels over the weekend will send VGK soaring to start next week.

Energy Select Sector SPDR (NYSE: XLE): Next week, ConocoPhillips (NYSE: COP), Occidental Petroleum (NYSE: OXY), Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX), the four largest U.S. oil companies, all report third-quarter results. The quarter is equivalent to over 42% of XLE's weight and that's reason alone to be trading this fund next week.

Market Vectors Coal ETF (NYSE: KOL): The Market Vectors Coal ETF has been showing some signs that it wants to close 2011 on a bullish note and moving above its 50-day moving average just a few cents away would be another feather in the ETF's October cap. Over 20% of KOL's weight delivers earnings next week.

Vanguard MSCI Emerging Markets ETF (NYSE: VWO): Europe has been one of the primary issues plaguing emerging markets stocks and ETFs this year and the scenario is simple. Bad news from Europe, EM stocks fall. Good news, EM stocks rise. VWO closed just below resistance at $40, which just below the 50-day moving average on Friday. Good news over the weekend should send VWO spiking higher to start next week.

iShares Silver Trust (NYSE: SLV): SLV pared its weekly loss with a decent finish on Friday and more good U.S. economic news and improvement in Europe should bolster this fund. That said, there are a lot of silver price forecasts out there calling for spot prices to surge before the end of 2011. There's not much time left for that jump to happen and next week is pivotal to any noticeable improvement in silver prices before year end.

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