Market Overview

A Look Ahead: Next Week's ETFs to Watch

Here we are nearly two months into 2012 and we're still talking about Greece. Stalled negotiations regarding a bailout package for the "G" in oft-used and notorious PIIGS acronym led to some panic selling at the open today. The totals weren't as bad at the close as they were in the morning, but Friday February 10 now has the dubious honor of being the worst day of 2012.

Hopefully, it holds that honor for a while, but the longer Greece remains a pain in the you-know-what, the more riskier assets will be repudiated in the favor of cash and boring sectors such as staples and health care.

With that, here is some weekend reading to consider as we highlight some ETFs that will be worth putting on your radar next week.

Global X FTSE Greece 20 ETF (NYSE: GREK) On more than twice the average daily volume, the Global X FTSE Greece 20 ETF plunged almost 6.4% Friday and that is good for one of the worst single-day results for this still new ETF. I'm not going out on a limb and predicting how GREK will act next week, but I will be bold enough to say I think volume is going increase in the only Greece-specific ETF.

ProShares UltraShort MSCI Europe (NYSE: EPV) Being long the ProShares UltraShort MSCI Europe today was wise as the ETF jumped 4%, though it can be argued the gains should have been higher especially with GREK down over 6%. Point is EPV is back in play and that sentiment will be amplified if the ETF runs above $40.

PowerShares S&P 500 Low Volatility ETF (NYSE: SPLV) It may not be a concept many investors want to stomach right now, but this market could easily pullback a little bit more and repudiate high beta sectors along the way. SPLV is valid way to avoid that carnage. Friday's decline of almost half a percent is almost meaningless because it came on volume that was just half the daily average.

Direxion Daily Small Cap Bear 3X Shares (NYSE: TZA) If small-caps start showing more dents in the armor, you'll want with this volatile leveraged play. If TZA posts a gain of 5% or more next week, the market's good vibrations from January could evaporate.

Market Vectors Indonesia Index ETF (NYSE: IDX) Following a 3% drop today, on heavy volume unfortunately, IDX finished the week looking like it's in technical danger. That has us wondering about what should be one of the better emerging markets ETFs out there. Instead, IDX has lagged to start 2012 and is now trading below its 20-, 50- and 200-day moving averages. A dip would be a welcome buying opportunity, but a dip is to $28. Below there and things could get ugly fast.

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

 

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