Market Overview

A Look Ahead: Next Week's ETFs to Watch

Thanks a lot Europe. That might be the sentiment of anyone that was long equities and other risky assets this week as fresh concerns about Europe's ability to do something about its sovereign debt crisis sent U.S. stocks tumbling. When the dust settled today, the Dow Jones Industrial Average was the best performer among the three major indexes this week and that's saying nothing because the Dow was down 2.8%.

Trouble behind? Certainly. Trouble ahead? Probably. The big problem now is that almost every economic data point delivered in the U.S. this week was a pleasant surprise, but they were all overshadowed by Europe.

Hopefully, that trend will break sooner rather than later. In the meantime, take a look at these ETFs for trading consideration next week.

iShares MSCI Spain Index Fund (NYSE: EWP): If we're going to say that Spain is the next domino to watch after Greece and Italy, then EWP needs to be monitored daily. Spain fell $600 million short of its target in a government bond sale this week. Still, EWP “only” lost 2.4% on the week. Hey, that's better than the Dow or S&P 500. That's far from a reason to be long EWP though. Below support at $32, EWP is vulnerable.

SPDR Gold Shares (NYSE: GLD): Gold took a nasty 3.5% tumble this week and the yellow metal's safe have status is once again being called into question. This has happened several times in recent weeks and it's probably not wise to buy into the idea that gold is headed for a bear market. The long-term trend is still in tact. Buy on the dips anyone?

ProShares UltraShort QQQ (NYSE: QID): The Nasdaq was just terrible this week, breaking several key support areas. This is an especially concerning situation since the fourth quarter is usually the time to own tech. Maybe it's time to alleviate those concerns with QID. A couple of more bad days for the Nasdaq and QID will be trading in the low 50s.

Guggenheim Solar ETF (NYSE: TAN): There are penny stocks and there are penny ETFs. The Guggenheim Solar ETF is living in the latter category trading below $3. Even though TAN was down nearly 9% this week, the chart indicates there's a lot more potential downside here, at least on a percentage basis. TAN could easily slide to $2 in the coming weeks.

ProShares UltraShort Brazil (NYSE: BZQ): A bad week for global stocks usually ensures the pain was as bad if not worse in Brazil. Both the iShares MSCI Brazil Index Fund (NYSE: EWZ) and the Market Vectors Brazil Small-Cap ETF (NYSE: BRF) are teetering on critical support levels. EWZ is the one to watch if you get involved with BZQ, but if both EWZ and BRF fall, then BZQ is going to be in rally mode.

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

 

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