Market Overview

Playing QE II: SPDR S&P Metals And Mining ETF (XME)

For traders and investors looking to play the hard asset trade ahead of what is expected to be another round of quantitative easing from the Federal Reserve, here is a fairly straightforward pick - buy the SPDR S&P Metals and Mining ETF (NYSE: XME). The near-term chart pattern looks solid, and the ETF's risk profile is substantially less than buying an individual stock such as Freeport-McMoran (NYSE: FCX) or Alcoa (NYSE: AA).

During today's trading session, the XME has gained 0.95% to $55.07. On the three-month chart, the ETF has surged 23%. It has a beta of 1.6 and a market capitalization of $732.43 million. Around 2.88 million shares trade each day, on average. The ETF's 5 largest holdings are Stillwater Mining Company (NYSE: SWC), Arch Coal (NYSE: ACI), Coeur D' Alene Mines (NYSE: CDE), Hecla Mining (NYSE: HL), and Alcoa (NYSE: AA).

Posted-In: Long Ideas Trading Ideas

 

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