ETF Outlook for Friday, June 20, 2014 (IGV, EWJ, XLP, SIL)

ETF Outlook for Friday, June 20, 2014:

iShares S&P Software Index ETF IGV

The ETF’s largest holding reported earnings after the bell last night and the stock is trading down over five percent Friday morning. Oracle ORCL missed earnings for the third consecutive quarter and this time the market is punishing shareholders.

The stock hit a new 13-year high before closing down on Thursday, therefore any numbers less than stellar will lead to selling. Expect IGV to open lower on the news and then follow the lead of Oracle throughout the day.

iShares MSCI Japan ETF EWJ

The Japanese ETF surged yesterday with a gain of 1.75 percent as it closed at the best level since last November. Even more impressive is that the ETF is within two percent of breaking out to the best level in six years.

Related Link: 3 Gold & Silver Mining ETFs Rocketing Higher In June

Continued stimulus from the Bank of Japan and a currency that cannot gain any momentum has helped boost both domestic and international demand for the country’s goods. The level to watch on the upside is $12.43.

SPDR Consumer Staples ETF XLP

On Thursday, the market was led higher by the “conservative” sectors with gold rallying nearly 50 percent, the utilities breaking out again, and now the consumer staples are joining the party. XLP closed at its highest level ever heading into Friday with a gain of 0.6 percent.

The ETF has been boosted by the relative strength from the tobacco and food companies over the last past days.

Global X Silver Miners ETF SIL

Two days ago it was the gold miners leading the sector ETFs higher. On Thursday, it was another precious metal at the top of the list. The silver mining stocks exploded yesterday with SIL finishing the day with a gain of 6.8 percent at the best level since March.

Just a month ago, the ETF was breaking down to multi-month lows and then the situation in Iraq began to escalate and the metals are once again safe havens. The ETF is up eight straight days and extremely overbought; do not be shocked with a short-term pullback.