Market Overview

ETF Outlook for Thursday, November 21, 2013

ETF Outlook for Thursday, November 21, 2013

Rydex CurrencyShares Euro ETF (NYSE: FXE)
Wednesday, rumors that the ECB is considering negative rates to help stimulate the European economy sent FXE down sharply from a two-week high.

Just last month FXE was hitting a multi-year high before the ECB surprisingly lowered interest rates and with the talk of more action it is pushing down the euro. The initial line of support for FXE will be at $132 and below that there is not significant support until the ETF reaches the $130 area.
The precious metal broke yet another support level yesterday when it hit a new four-month low. The next major area to watch is at $116, which is a multi-year low. A midday rally in the price of the U.S. Dollar did not help the commodities, especially gold and silver.

iShares Dow Jones U.S. Health Care Providers Index ETF (NYSE: IHF)
The mess that has become Obamacare has not been good for the president’s approval rating, however it has not been able to damper the health care provider stocks. The ETF hit a new all-time high yesterday as investors realize that the many insurance companies that make up the portfolio will likely be winners when all is said and done with health care reform.
iPath Cocoa ETN (NYSE: NIB)
As a whole the commodity ETFs have been lagging the market and several are hitting new lows. One of the rare bright spots has been NIB, which tracks the cocoa futures. Even though the beans that are used to make chocolate are seeing more product come to the market in Africa, they are still falling short of demand.

The volatility in this thinly traded ETN is above average and could involve major swings from day to day.
However, the breakout is significant and the longer-term chart shows an even more important breakout occurring, putting the ETN at the
highest level since the fourth quarter of 2011.
SPDR Financial ETF (NYSE: XLF)
With all the talk surrounding the major financials still on the negative side of the aisle, it is hard to imagine XLF hitting a new multi-year high.


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