Market Overview

A Look Ahead: Next Week's ETFs To Watch


Wow, that was nice. Five straight up days for U.S. stocks as the S&P 500 shot to its third-best weekly run since 2009. Europe, of course, continues to occupy center stage. This time around it appears as though policy makers are actually making some headway with Greece. Then again, we've been down this road before.

France and Germany remain convinced Greece will stay in the Eurozone. We've heard that before, too, so color us skeptical that Europe will suddenly cease being a major issue for investors to contend with. The alternative is that good or less bad news will continue to flow across the pond and the market will just keep grinding higher.

With that, it's probably worth being cautiously optimistic for the week ahead and here some of the ETFs you'll want to keep an eye on.

PowerShares Dynamic Industrials Portfolio (NYSE: PRN): Rumors of United Technologies (NYSE: UTX) pursuing an acquisition of Goodrich (NYSE: GR) could move this downtrodden ETF. Even if United Technologies decides to take its business elsewhere, elsewhere probably means another PRN constituent.

SPDR KBW Insurance ETF (NYSE: KIE): A couple of KIE constituents were feeling groovy after analyst upgrades last week and the ETF recently put in a double bottom around $33, so the technical outlook for this ETF is quite appealing here. This isn't an invitation to buy all financials, but if you have to mess with this sector from the long side, KIE looks like one of the better ETFs to trade.

SPDR S&P Oil & Gas Exploration & Production ETF (NYSE: XOP): If a return to riskier assets is legitimized next week, oil and oil equities will benefit. Most of the stock-specific news for XOP holdings has been decent recently and if this ETF can crack resistance at $55, this volatile fund would be back in rally mode.

PowerShares Dynamic Food & Beverage Portfolio (NYSE: PBJ): With General Mills (NYSE: GIS) reporting earnings on Wednesday, one of our favorite defensive plays will be worth watching this week. PBJ needs to keep closing above support at $19 to keep buyers interested.

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


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