Time to trade these ETFs

The market may be turning.

By Stock Traders Daily Mar 6, 2012 11:10AM

Zurbar/age fotostockSigns that a trader's market may soon be upon us surfaced once again last week. The market pulled back temporarily following comments from Ben Bernanke, which showed no indications the Federal Reserve is prepared to take additional measures to prop up a sluggish economy.

 

Despite a brilliant run in the broader equity markets since the start of the year, not everyone is convinced of the sustainability. "We are at the tail end of this rally," Tom Kee Jr., President and CEO of Stock Traders Daily, wrote in a recent trading alert to paid subscribers. "Yes, it can go a little higher, but the market is much more likely to turn down sooner rather than later."

 

ETFs will maintain their popularity as short term sector plays continue to be the norm. Here are four funds for traders to monitor for potential trades this week.

 

Across the pond

 

This week, Greece's private debt creditors are set to render a decision as to whether or not they will approve a $140 billion sovereign debt restructuring deal. Uncertainty surrounding the situation has been unsettling to the entire European Union.

 

European stocks have still been able to grind out gains as the Vanguard MSCI Europe ETF (VGK) has gained 11.2% since the beginning of the year. A resolution to the crisis in Greece could take an added weight off the shoulders of European equities.

 

The PowerShares DB U.S. Dollar Index Bullish Fund (UUP) was trending higher in the second-half of last week as the dollar rose to a nine month high against the yen. Bernanke's comments were also a positive development for traders betting on the dollar. Shares of UUP rose 1.4% last week.

 

Branching out

 

Commodity traders will be monitoring the progress of the Guggenheim Timber ETF (CUT) this week. The fund rose 4.4% last month as demand for lumber from China picked up and hopes of a housing recovery in the U.S. continued to linger. Lumber was one of the best performing commodities last month as it approached a ten month high.

 

One other ETF for traders to keep an eye on this week is the United States Oil Fund (USO). The Energy Department will release its inventory report on Wednesday morning. Last week, the department noted that oil inventories rose by 4.16 million barrels. Shares of USO are up 7.0% year-to-date.

0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

113
113 rated 1
268
268 rated 2
422
422 rated 3
632
632 rated 4
512
512 rated 5
518
518 rated 6
682
682 rated 7
523
523 rated 8
343
343 rated 9
124
124 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
KOGKODIAK OIL & GAS Corp10
COPCONOCOPHILLIPS9
TAT&T Inc9
DVNDEVON ENERGY CORPORATION9
EOGEOG RESOURCES Inc9
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.