Before It Happens: Next Week's Top ETF Plays
Last week in our "before it happens" column, we examined some noteworthy ETF trades that would be in play on the back of earnings reports. This week, we're going to mix things up a bit and look for some ETFs that could move outside of earnings. Don't worry, we also have a few earnings plays that make the roster.
1) iShares MSCI Investable Market Index Fund (NYSE: EWW):
EWW has been outperforming other Latin America ETFs in 2011 and the outlook for Mexico supports that run. America Movil (NYSE: AMX), one of EWW's top holdings, reports earnings on Tuesday. Be careful if EWW drops below $61.
2) Consumer Discretionary Select Sector SPDR (NYSE: XLY):
Friday's jobs report was less than impressive, but hey, the unemployment rate fell and stocks rose. XLY continued to move higher as well and it's chart looks strong. Maybe a positive earnings announcement from Walt Disney (NYSE: DIS) on Tuesday will be just the tonic to help XLY break out.
3) Market Vectors Agribusiness ETF (NYSE: MOO):
MOO would be in play even without the help of Egypt as Agrium (NYSE: AGU) and Bunge (NYSE: BG) both report earnings next week, but the reality is the spotlight is shining brightly on agriculture commodities. Many have seen substantial runs higher in short periods of time, leaving them looking overbought and vulnerable to sharp pullbacks. That's one side of the argument. The other is why fight the trend and the trend for MOO is up.
4) ProShares UltraShort MSCI Brazil (NYSE: BZQ):
Even in a decent week for U.S. stocks, Brazil-specific ETFs continued to falter. This situation is getting worse not better, but it is also making BZQ look all the more attractive at this point. You can probably risj $2 to make $3-$4 in BZQ over the next week or two.
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