ETF Outlook for the Friday June 6, 2014
iShares MSCI Spain ETF (NYSE: EWP)
Stocks continue to rally in Europe after the European Central Bank announcement Thursday morning. The Spanish stock market index is up over one percent and may send shares of EWP higher on the open Friday morning. The ETF was up two percent Thursday and is closing in on a four-year high at the $46 area.
A rally to at least test the old resistance is becoming more likely in the weeks ahead.
Related Link: 4 ETFs Moving On The ECB Decision
SPDR S&P 500 (NYSE: SPY)
The S&P 500 tracking ETF closed at yet another all-time high Thursday after gaining 0.65 percent on the session thanks to an afternoon rally.
Investors must be bullish on Friday morning's ever-important monthly jobs number as the volume was above average Thursday ahead of the number. If the number is perceived as negative, look for support on SPY at the $192 area in the coming days.
SPDR Gold ETF (NYSE: GLD)
Shares of gold were able to rally Thursday after the European Central Bank lowered the interest rate on three key numbers. The 0.75 percent gain was solid, but the gold bugs were definitely looking for a bigger rally. The inability for gold to rally on days when it typically would be a market leader is extremely bearish in the near-term and why the ETF is a few days from a multi-month low.
IQ U.S. Real Estate Small Cap ETF (NYSE: ROOF)
A 1.9 percent rally Thursday for ROOF put the ETF at the best level in two years, as the REITs have quietly been outperforming the market. With interest rates low and no near-term catalyst to send rates higher, the high-yielding REITs are an attractive investment for income-seeking investors.
The ETF concentrates on small cap REITs, which have outperformed its large cap peers in four out of the last five years. The ETF currently pays a 7.45 percent dividend.
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