ETF Outlook for the Week of April 21, 2014:
PowerShares QQQ (NYSE:QQQ)
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It is a big week for earnings, especially the NASDAQ 100 stocks. Of the 100 stocks in the index, 32 will be reporting earnings this week. The stocks represent over 50 percent of the market cap of the index and therefore the ETF.
After pulling back eight percent from a decade-high, the ETF has started to rally and is coming into the week on a four-session winning streak. The next few days will be critical to the near-term direction of the ETF and investors should expect volatility with the large amount of earnings set to be released.
First Trust NASDAQ Clean Edge Green Energy ETF (NYSE:QCLN)
Tesla Motors (NASDAQ:TSLA), the ETFs largest holding, will begin making deliveries to China this week. After falling with all the high-flying stocks over the last month, TSLA is trying to find support and the news regarding China could help stop the bleeding.
Other stocks in the ETF in the news are the battery makers; Plug Power (NASDAQ:PLUG) is giving a business update Monday and it has the stock and its competitors that are also in the ETF a boost in pre-market trading. Add in the news last week the government is planning on $4 billion in green energy subsidies and QCLN should be in focus this week.
SPDR Energy ETF (NYSE:XLE)
The energy stocks have quietly been one of the best performers this year. XLE broke above $91.42 last week, which was the old all-time high set in 2008. Any time an ETF can breakout above a multi-year high it is a bullish signal.
However, when it is able to achieve that feat when the market is struggling to hit new highs it shows relative strength and is even more bullish. Keep an eye on the energy stocks this week to see if the breakout continues. All pullbacks should remain above the $91 area for the ETF to remain healthy.
Global X SuperDividend ETF (NYSE:SDIV)
The basket of stocks from around the globe is hitting a new multi-year high, outperforming the U.S. market as well as its international peers. The ETF is highly concentrated in the U.S. (24 percent), Australia (20 percent), U.K. (11 percent), and France (10 percent).
The diverse ETF invests in 100 of the highest yielding stocks in the world with the financials, utilities, and REITs representing about 45 percent of the portfolio. The ETF currently yields a whopping 6.1 percent and has been showing great relative strength. A strong mix of equity exposure as well as income has made SDIV an attractive investment option.
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