Five Critical ETFs For Earnings Season

Here we go again. We're in the throes of another earnings season as several S&P 500 constituents have already reported, but Dow component Alcoa AA will really get the ball rolling Tuesday after the market closes. Questions linger. Will third-quarter earnings season trump macroeconomic headlines, especially those from Europe? Will there be any noteworthy surprises that portend a fourth-quarter rally? Of course, there are other mysteries that need solving, too. Arm yourself with a list of some of the critical ETFs to watch and trade this earnings season. Financial Select Sector SPDR XLF: XLF's chart is a mess and the individual stories for the ETF's constituents aren't much brighter. JPMorgan Chase JPM gets bank earnings season started on Wednesday and next week will bring an avalanche of reports from XLF members. Investors in the financial services sector are so starved for good news that the slightest hint of it could boost XLF. More concerning headlines probably drive a near-term nail in the coffin of this fund. iShares Dow Jones U.S. Oil Equipment Index Fund IEZ: For the very patient among us, the iShares Dow Jones U.S. Oil Equipment Index Fund is trading at a very tempting price. That $48 and change could easily be $70 in the six months assuming a significant turn in market sentiment. Halliburton HAL, Schlumberger SLB and some other IEZ components report next week and those reports could set the tenor for the entire oil services group this earnings season. What's important here is these companies proving they're seeing growth outside of the North American shale market. Market Vectors Gold Miners ETF GDX: The Market Vectors Gold Miners ETF has a long road ahead of it if it wants to get back to its 52-week high before year end. That $10 move isn't impossible if gold prices keep moving higher AND GDX's constituents deliver bullish Q4 and 2012 guidance and production and gold prices. Technology Select Sector SPDR XLK: When Apple AAPL accounts for over 14% of an ETF's weight, that means this is one to watch this earnings season as investors will be anxious to see what life will be like following the death of the iconic Steve Jobs. Google GOOG, another top-10 XLK member, reports this Thursday after the close. Industrial Select Sector SPDR XLI: We're watching XLI and hoping for positive upside surprises and strong guidance from the following highly economically sensitive companies: Caterpillar CAT, 3M MMM and Union Pacific UNP. If the trifecta hits, XLI and the broader market will be rallying hard into year-end.