ETF Outlook for Thursday, April 17, 2014
PowerShares QQQ (NYSE:QQQ)
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After the bell Wednesday, Google (NASDAQ:GOOG) reported earnings that disappointed investors. IBM (NYSE:IBM) was also trading lower after their quarterly numbers were released.
With Google being the number three holding in QQQ and IBM likely to drag down related technology stocks the ETF will be fighting its way to the breakeven level all day.
This comes one day after QQQ closed with a gain of 1.3 percent at the highest level of the session. Todays action could be volatile heading into a three-day weekend.
Global X Lithium ETF (NYSE:LIT)
An announcement from the government that it will provide up to $4 billion in green energy support the battery makers and related solar stocks rallied. LIT is made up of half battery makers, which would benefit from the plan as well as lithium producers that could also take advantage of the government doling out money to the green sectors.
The ETF has struggled the last month after hitting a 52-week high on the news of the Tesla Motors (NASDAQ:TSLA) GigaFactory. The pullback did hold support and yesterdays rally triggered a buy signal on the RSI indicator.
See also: International ETFs Showing Strength
KraneShares CSI China Internet ETF (NYSE:KWEB)
A 2.2 percent gain yesterday in the niche China Internet ETF was fueled by news within the Yahoo (NASDAQ:YHOO) earnings report regarding Alibaba, the Chinese company. Yahoo reported blockbuster numbers for Alibaba, which it currently owns 24 percent stake.
KWEB does not own shares of Alibaba, as it plans to go public in the U.S. in the coming months, but the anticipation and the strong numbers from the company have investors looking for a way to play the Chinese Internet sector and KWEB along with the Guggenheim China Technology ETF (NYSE:CQQQ) appear to be poised to capture some money flowing into the sector.
First Trust NASDAQ Auto Index ETF (NYSE:CARZ)
The global auto stocks quietly had a strong day Wednesday with a gain of 2.6 percent for CARZ. Both Ford (NYSE:F)andGeneral Motors (NYSE:GM) were up at least 1.5 percent on the session and their international peers joined them moving higher.
It appears the sector has found a bottom after pulling back over the last two weeks. CARZ is only 2.7 percent below its all-time closing high set the last day of March. Adding to the positive momentum around the ETF was an RSI buy signal on the chart.
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