ETF Outlook for the Thursday June 12, 2014 (BNO, EWC, SMH, INTC, SLX)

ETF Outlook for the Thursday June 12, 2014

United State Brent Oil ETF BNO

An escalation in the violence in Iraq has led to a spike in the price of Brent crude oil as well as WTI oil in the U.S. There has not been a major affect on oil supply at this time, however traders are pricing in the spread of violence in the country. Sunni insurgents threatened to attack a refinery that supplies about 300,000 barrels of oil per day. BNO is up this morning and is nearing a major breakout level at $45/share.

iShares MSCI Canada ETF EWC

Shares of the Canadian ETF rallied 0.4 percent yesterday to the best level since August 2011 as the S&P 500 fell for the second consecutive day. The ETF was helped by some relative strength in the energy stocks. Imperial Oil IMO, a major oil and gas company located in Canada rallied 1.6 percent yesterday to close at a four-year high.

Market Vectors Semiconductor ETF SMH

The ETF close up 0.17 percent yesterday, which was good enough to extend the winning streak to 15 sessions. The last time the ETF closed with a loss was May 20. Intel INTC has been a major reason for the ETF winning streak, but the large-cap technology company was down yesterday and SMH continued its historic run. With the RSI clearly cemented at the highest overbought level of 100 the odds of a pullback this week is very high.

Market Vectors Steel ETF SLX

Morgan Stanley cut their iron ore estimate this morning for the remainder of this year as well as 2015. They expected the price to fall to approximately $90 per ton in 2015 from $135 in 2013. The price is currently below $92 for the first time since 2012 as supplies have been increasing. SLX has exposure to several of the big name iron ore companies located around the globe. Expect the ETF to open lower this morning, as the downgrade will affect the entire industrial mining sector.