ETF Outlook For Wednesday, April 16, 2014 (SMH, IAT, XBI, EWS, INTC, USB)

ETF Outlook for Wednesday, April 16, 2014

Market Vectors Semiconductor ETF SMH

The ETF’s largest holding, Intel INTC, reported earnings Tuesday night after the bell that came in a penny better than expectations. Revenue was in line with consensus, an increase of 1.7 percent year-over-year.

The numbers were good enough to send the stock higher by a dollar after the announcement. The stock makes up 18 percent of the ETF and will have a direct impact on how SMH trades throughout the day. Because INTC is a heavily traded stock, expect volatility between the opening and closing bell as investors digest the quarterly numbers.

iShares U.S. Regional Bank ETF IAT

Before the opening bell today the two largest holdings of the ETF, which make up 32 percent of the portfolio report quarterly earnings. U.S. Bancorp USB andPNC Financial Services PNC are on the earnings docket. Both stocks have recently pulled back and have brought down the ETF with them. IAT is down over five percent from the multi-year high it set in March.

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Over the last three trading sessions the ETF has begun to form a consolidation pattern that could be a signal the short-term pullback is over and a new uptrend is set to begin. Wednesday's earnings will determine if a new uptrend is ready to commence.

SPDR S&P Biotech ETF XBI

The biotech ETF is now down 28 percent from an all-time high set just two months ago. On Tuesday, XBI closed higher by 0.2 percent, but it was eight points off the low of the session. The $114 area has been significant for XBI over the last year, as it has acted as resistance as well as support during several pullbacks.

The low yesterday was $115.31, bringing the ETF down once again to the support area. With an RSI reading well into oversold territory at 17 and the ETF bouncing off support there is a high probability XBI has found its short-term support and will bounce in the coming weeks.

iShares MSCI Singapore Index ETF EWS

The Southeast Asian country has been attempting to move out of bear market mode and on Tuesday, it led the emerging markets with a gain of 1.3 percent. EWS is now up over 12 percent from the February low and trading at the best level since December of last year. The ETF is heavily invested in the large financial stocks in the country.

If the trend continues, EWS is setting up for a big 2014. The ETF has been alternating negative years with big gains in the following year since 2010 and after a negative return this year the ETF could be poised to make investors happy.