ETF Outlook for Wednesday October 23, 2013

iShares Dow Jones US Aerospace & Defense ETF (NYSE:ITA)

Three of the top six holdings of ITA report earnings today so expect the ETF to be on the move. Boeing (NYSE:BA), General Dynamics (NYSE:GD), and Northrop Grumman (NYSE:NOC) account for 20 percent of the ETF with BA the top holding.

The government shutdown affected sector more than most, but after bouncing off the 50-day moving average the ETF is now within 2 percent of an all-time high. The support level to watch is $91 and the all-time high set in September is $97.05.

SPDR Consumer Staples ETF (NYSE:XLP)

The ETF is coming up on a critical level that should determine the next move for a few weeks. XLP hit a new all-time high of $42.20 in mid-May before pulling back for a few weeks.

The ETF has attempted to break through the resistance level several more times since May and each time it has failed. Yesterday the ETF closed at $41.92 and is within striking distance of breaking out to a new high. Look for big moves in Proctor & Gamble (NYSE:PG) or Coca-Cola (NYSE:KO), the ETFs two largest holdings if a breakout is to occur.

Guggenheim BRIC ETF (NYSE:EEB)

The BRIC acronym was synonymous with making money for many years, until India and China began to slow and Russia and Brazil ran into their own issues. But recently the four countries have started to perk up again and are now trading at a new yearly high.

Most emerging market ETFs are doing well in the last few months, but the EEB is in rare company with the new high designation. The combination of attractive valuations and potential growth in the coming years makes EEB an interesting investment option.