ETF Outlook for Wednesday, February 26, 2014
Market Vectors Gaming ETF (NYSE:BJK)
The casino stocks have been on the move again lately as more talk has been hitting the wires regarding legalized gambling in Japan. Estimates have the potential annual revenue from Japanese casinos at $40 billion. That is six times the amount that Las Vegas generated last year and not too far from the $45.2 billion that Macau totaled in 2013.
The ETF is made up of over 40 casino stocks from around the world. Some of the big names in the ETF, MGM Resorts International (NYSE:MGM) and Las Vegas Sands (NYSE:LVS), said they would spend up to $10 billion each in Japan if gambling is legalized. This could be a game changer for the sector and BJK is the way to play it via ETFs.
Guggenheim Solar ETF (NYSE:TAN)
One of the largest and most well known stocks in the solar sector reported earning s after the bell yesterday and they disappointed investors. First Solar (NASDAQ:FSLR) missed its fourth quarter earnings estimates and guided well below expectations for the companys fiscal first quarter.
The stock was down over 10 percent in after hours trading and will have a major effect on the entire sector and TAN today. The ETF is less than one percent off of a multi-year high and when a major player in a niche sector disappoints it will have a ripple affect that hurts all related stocks.
iShares MSCI Emerging Markets Index ETF (NYSE:EEM)
The emerging markets were laggards yesterday led lower by another dive in Chinese stocks. EEM closed down 1.2 percent after rallying up to the 50-day moving average and failing again to breakout.
The ETF has tried to break back above the indicator several times over the last few months, only to fail and this has led to a distinct downtrend since October. If the trend continues it will lead to EEM falling another 5-8 percent from the current price.
First Trust AMEX Biotechnology Index ETF (NYSE:FBT)
The ETF surged 5.7 percent yesterday as one of its 20 holdings gapped higher on new out of the FDA. Intermune (NASDAQ:ITMN) jump 170 percent yesterday to the best level since 2011.
Even though ITMN was the smallest holding in the portfolio at 3.6 percent coming into the day, when there are only 20 stocks in an ETF a gain like ITMN experienced yesterday will have a great affect on performance. The ETF is now up 78 percent in the last 12 months. Watch the action in ITMN today to have an insight into the action for FBT.
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