Market Overview

A Look Ahead: Next Week's ETFs to Watch

At least investors and traders got to head off to celebrate the holidays in good spirits as all three major U.S. indexes closed sharply higher for the week with the Dow Jones Industrial Average and the Nasdaq soaring more than 3% each while the S&P 500 popped to its highest levels in two weeks.

Thank U.S. economic data points and no bad news out of Europe for that. On Thursday, the November reading of the index of U.S. leading indicators climbed 0.5% following a 0.9% increase on October. Economists expected a November rise of just 0.3%. November reading of the index of U.S. leading indicators climbed 0.5% following a 0.9% increase on October. Economists forecast a November rise of just 0.3%.

Those two numbers were trumped by the fact that weekly jobless claims fell by 4,000 to 364,000 last week, well below the reading of 380,000 economists were expecting. Last week's reading is also good for the best reading since April.

Good stuff. Next week is a four-day week with nothing in the way of big earnings reports, so we're digging deep to find worthwhile opportunities with ETFs in the week ahead.

iShares Russell 2000 Index Fund (NYSE: IWM): As we mentioned this week small-caps are a great way to play the January Effect and the group has been starting to perk up as of late. IWM looks good above $75.

Vanguard Total International Stock Index ETF (Nasdaq: VXUS): It has been a rough year for VXUS, the low-expense ratio ETF with over 6,000 stocks might be an appealing value play for some looking to establish small positions late in the year in anticipation of better things ahead in 2012.

iShares Silver Trust (NYSE: SLV): Speaking of better things ahead next year, silver bulls can only hope that's the case. As for this past week, stocks were higher. SLV was not. Maybe it's time to ride the ProShares UltraShort Silver (NYSE: ZSL) into year-end.

iShares MSCI South Korea Index Fund (NYSE: EWY): The iShares MSCI South Korea Index Fund was down Monday on news of Kim Jong Il's death, but the ETF showed plenty of moxy and closed higher for the week. We like the resilience and EWY would be a nice longer-term play for those willing to wait for a move above $55.

Happy Holidays from the ETF Professor.

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

 

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