Market Overview

ETF Outlook for Thursday, December 12, 2013 (KWT, FXI, OEF, FXE)

ETF Outlook for Thursday, December 12, 2013 KWT, FXI, OEF, FXE

ETF Outlook for Thursday, December 12, 2013

Market Vectors Solar Energy ETF (NYSE: KWT)

A fourth quarter revenue warning from SunEdison (NASDAQ: SUNE) has the stock down over seven percent heading into the opening bell. The solar stock is also announcing a debt refinancing effort where the company plans to sell $800 million worth of convertible senior notes. SunEdison is the number two holding in KWT, making up 9.4 percent of the portfolio.

See also: #PreMarket Primer: Thursday, December 12: US Budget Deal Gaining Momentum

The big move after the announcement should have a direct affect on the ETF today. The 14 percent loss in the last 5 weeks for KWT looks to be extending lower.

iShares FTSE/Xinhua China 25 Index ETF (NYSE: FXI)

Yesterday the Chinese ETF suffered one of its worsts one-day losses in months, losing 3.26 percent. The heavy volume day was driven by a combination of mixed Chinese economic numbers as well as the possibility of a taper in December.

The feeling is that the emerging markets will be hit hard when the Fed begins to taper its monthly asset purchases. The ETF should hold the $38 support level if investors want to keep a bullish view. A close below $38 would be a breakdown and could have the ETF retest support at the $36 area.

iShares S&P 100 Index ETF (NYSE: OEF)

The rumor that had been making its way around Wall Street last week is not a reality. Facebook (NASDAQ: FB) will be added to the S&P 500 and the S&P 100 indices following the close on December 20. Alliance Data Systems (NYSE: ADS)and Mohawk Industries (NYSE: MHK) will also be added to the S&P 500. After hours, Facebook was up over three percent and MHK is adding two percent. With OEF only holding 100 positions it could be some movement before and after the actual addition with investors positioning themselves.

Rydex CurrencyShares Euro ETF (NYSE: FXE)

The euro ETF closed a few ticks away from the best closing price in two years on Wednesday. The continued fall of the U.S. Dollar has been the culprit as of late. This could be considered surprising considering the taper talk has begun in earnest again.

The beginning of a taper should be bullish for the greenback and thus put pressure on the foreign currencies, but that has not been the case the last week. Add in that the ECB is more likely to have an accommodative policy in 2014 and it bears watching FXE at resistance. A breakout above $136.75 would be a significant move in the coming days.


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