ETF Outlook For Friday, February 7, 2014 (SOCL, SPY, EDEN, SKYY)

iShares MSCI Denmark Capped ETF (NYSE:EDEN)

Of all the single country ETFs, the little country of Denmark has been a rock star lately. The ETF closed out Thursday a half percent below the best level ever since it began trading in early 2012. Last year the ETF gained 41 percent, outpacing the U.S. and leading the Western European ETFs.

If the trend continues the ETF is set to hit a new high in the coming days and with it fresh off a buy signal the technicals are positive. The one concern with the ETF is that it lacks trading volume. Only 5,500 shares exchanged hands yesterday and that could be a concern for some investors.

Global X Social Media ETF (NYSE:SOCL)

After the bell yesterday, the ETFs third largest holding, which makes up 9.6 percent of the allocation, reported subpar earnings and the stock is off 10 percent in after hours trading. The stock, LinkedIn (NASDAQ:LNKD) failed to woo investors that have become accustomed to blockbuster growth numbers.

See also: The Twitter Effect on ETFs

The ETF had to deal with Twitter (NYSE:TWTR) falling 24 percent yesterday, but was still able to close with a small gain. Today it will be tough to close in the green with such a large holding starting off the session deep in negative territory.

SPDR S&P 500 ETF (NYSE:SPY)

The news of the week hits this morning before the bell rings when the monthly jobs number is announced. The estimate is for the economy to add 190,000 jobs in the month of January and anything less than that could lead to a continuation of the selling that has gripped 2014.

Even though earnings are on pace to growth eight percent over last year, the best level in years, it may not be enough to trump a poor jobs report. Technically SPY generated a buy signal this week and is following past 6 percent sell-offs with a rally. Todays number will trump any chart and it must be watched closely.

First Trust ISE Cloud Computing ETF (NYSE:SKYY)

This ETF is one of the few that did not close below its 50-day moving average during the recent pullback. The relative strength is admirable considering how technology stocks and high beta stocks took a beating. As long as SKYY continues to close above the $26 area it will remain in a very strong bull market.

The charts suggest the rally will continue and that the ETF will break though the prior high and could make its way to $30, a gain of 12 percent from the current price.