Market Overview

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

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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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