Market Overview

A Look Ahead Next Week's ETFs to Watch


Don't be fooled by Friday's anemic gains. The week that was was a bloodbath. The Dow Jones Industrial Average put in its worst week since 2008 and things are so bad in terms of finding safe havens that gold plunged $100 an ounce on Friday.

With Greece edging closer to a sovereign debt default and the U.S. teetering on the brink of a double-dip recession, these are indeed interesting times. Well, these are good times to play with some inverse ETFs. Oh yeah, stay away from commodities, financials and a host of other sectors.

With those pearls of wisdom, let's have a look at some ETFs to watch next week.

Market Vectors Coal ETF (NYSE: KOL): We used to love the Market Vectors Coal ETF, but that's asking a lot these day. Alpha Natural Resources (NYSE: ANR) and Walter Energy (NYSE: WLT) pared production and revenue outlooks, respectively, this week. If you're just dying to establish a long position in KOL, pare that with the ProShares UltraShort Basic Materials (NYSE: SMN).

iShares Dow Jones Transportation Average (NYSE: IYT): If coal producers are becoming negative in their outlooks, then that's not good news for IYT's constituents. IYT is an ETF intimately correlated to the broader economy and if no one is enthusiastic about that, then no one is going to be warm to this ETF. IYT was trading above $80 earlier this week. It at $75.74 on Friday.

Direxion Daily Financial 3X Bear Shares (NYSE: FAZ): Financial rose on Friday. No, that's not a joke, but there is still no reason to be bullish on these stocks. Trading around $69, FAZ offers upside to at least the low 80s with support at $65. That's a pretty good risk-reward.

PowerShares DB Crude Oil Double Short ETN (NYSE: DTO): The longer crude futures remain below $80 a barrel, the more attractive DTO becomes. DTO has more than $10 to go before hitting its 52-week and with an average true range of nearly 3.3, short-term traders can lean on DTO for some quick gains.

ProShares UltraShort Emerging Markets (NYSE: EEV): There are a lot of ways to play emerging markets right now. None of those ways include buying a traditional long emerging markets ETF. Europe's sovereign debt woes have hammered EM ETFs and with a deeply concerning outlook for global growth, the BRIC quartet is a mess. Smaller emerging markets are taking their cues from their larger brethren and that's not good for EM bulls.

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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