ETF Outlook for Friday October 25, 2013

ETF Outlook for Friday October 25, 2013

PowerShares QQQ ETF QQQ

The NASDAQ tracking ETF is poised to open higher today after some solid tech earnings after the bell Thrusday. Two tech bellwethers, Microsoft MSFT and Amazon.com AMZN both surged higher in after hours yesterday after beating estimates and proving that technology is the place to be this earnings season.

A close above $82.45 will but QQQ at the best level in over a decade and trigger a new breakout after consolidating for a week.

Guggenheim Insider Sentiment ETF NFO

Every investor wants to be an insider or “know what the insider knows." NFO does not invest based on information that is illegal or unethical, however their strategy is based on what the insiders (big money) are doing with their investments. Apparently that has been a good strategy to follow as NFO was up another 1.3 percent yesterday to close at a new all-time high.

The ETF is now up 29.7 percent on the year and has consistently been able to outperform the major indices. Look for NFO to continue that track record as long as the market continues to run with the bulls.

SPDR Consumer Discretionary ETF XLY

The economy is not doing well. The consumer is dead. That has been the theme on Wall Street for years, fortunately for investors the talking heads have been wrong. For proof all an investor has to do is look at the performance of XLY, up 29.7 percent this year and sitting at a new all-time high.

The number two holding is AMZN and another company that reported strong earnings this week is also in the top ten, Ford Motor F. Look for XLY to hit a new all-time high again today on the back of AMZN.

SPDR S&P Capital Markets ETF KCE

The financial stocks have done well recently with a specific portion of the sector breakout out yesterday. KCE is a little known ETF that invests in broker-dealers, asset managers, trust and custody banks and exchanges.

The ETF is up 32 percent in 2013 and trading at the best level in five years. The top holdings are Waddell & Reed Financial WDR and BlackRock BLK. Even though the ETF is at a multi-year high, there is still a lot of upside potential for the ETF if it were to ever attempt to retest the 2007 high.