ETF Outlook for Wednesday November 20, 2013 (ITB, BIZD, TAN, UNG)

ETF Outlook for Wednesday November 20, 2013

iShares Dow Jones U.S. Home Construction Index ETF ITB

Today at 10:00 AM the existing home sales for October are released and the market expects the number to fall slightly from September. The number should move ITB based on where it is comes in versus the estimate of 5.2 million. Retail sales for October are also announce at 8:30 AM and could also have an affect on the ETF considering its exposure to Home Depot HD andLowe’s LOW.

HD reported earnings yesterday and the stock gapped big before closing the session with a gain of only 0.9 percent. ITB has struggled this year with a gain of 7.0 percent and some good news could once again get investors back in the housing sector.

Market Vectors BDC Income ETF BIZD

After closing at its best level of the year on Friday, BIZD is trading 2 cents from the high after holding steady the last two trading sessions. The ETF is a basket of business development companies (BDCs) that offer loans to small and mid-sized companies in exchange for typically high interest rates. The ETF is yielding 7.4 percent and is one of the few income ETFs that have held up in the rising interest rate environment. This is due to its ties to the performance of the overall stock market as well as interest rates. The key will be for BIZD to hold above the $20.75 area on any pullbacks in the coming days.

Guggenheim Solar ETF TAN

The parabolic rise of the solar stocks may have come to a screeching hold this week as the losing streak for TAN has reached four sessions. But do not panic yet, as the ETF did suffer a similar sell-off in late October before rallying 10 percent in the next two weeks to a multi-year high.

The sector was driven by a 5.8 percent drop in Trina Solar TSL yesterday after initially gapping up higher. Widely followed First Solar FSLR lost 3.9 percent and is now down 6 percent in the last three trading days. It will be important for TAN to hold the support area at $36.30 this week if it wants to keep the momentum status.

United State Natural Gas ETF UNG

The rally attempt by UNG two weeks ago off important support at the $17 area appears to be losing steam the last two days. The ETF is down 2.7 percent this week and yesterday it closed on the low of the session. If the trend continues as it has for the last few months it does not look good for UNG. If the $17 area is broken in the coming days it will spark a new sell signal and investors in UNG will hear the “look out below” advice from the charts.