ETF Outlook For Wednesday, June 4, 2014 (BJK, SMH, FAN, GLD, INTC)

ETF Outlook for Wednesday, June 4, 2014

SPDR Gold ETF GLD

Shares of gold broke a six-session losing streak on Tuesday with a modest gain of 0.3 percent. Before the midday rally the ETF hit the lowest level since January as investors do not view the precious metal as a portfolio holding when the stock market is hitting new all-time highs.

The trend is definitely lower for gold, but in the very short-term the ETF is extremely oversold and a rally from the current level could be possible in the coming days.

Market Vectors Gaming ETF BJK

The ETF was one of the worst performing sector ETFs on Tuesday with a drop of 1.5 percent. News out of the Far East gambling mecca Macau hurt stocks after growth came in well below expectations. The ETF had been in the midst of a two-week rally before the selling hit the sector. 

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That being said, over the last few months the ETF has been stuck in a downtrend as it lags the overall market that is hitting new all-time highs. The underperformance coupled with the slowing Macau numbers could have the ETF on the defensive for the near future.

Market Vector Semiconductor ETF SMH

A 1.4 percent rally in semiconductor giant Intel INTC to a new 23-month high helped propel the entire sector to new yearly highs. Shares of SMH closed out yesterday with a gain of 1.2 percent and are now trading at a fresh 12-year high.

The top performing sector ETF has been flying under the radar as most investors have turned negative on the technology sector as a whole. While the high flyers are struggling the older names such as Intel are doing well and boosting SMH.

First Trust Global Wind Energy ETF FAN

Shares were lower by 0.4 percent yesterday after closing at a new multi-year high on Monday. The longer-term news has been positive for the sector after the government announced the new EPA regulations that will put pressure on coal power plants.

On Wednesday morning, NRG Yield NYLD agreed to acquire the Alta Wind facility, the largest wind farm in the U.S., which is located in California for $870 million. Even though the wind farm is privately held, it could have an affect on the wind stocks in general today. As investors focus on solar, wind energy is often overlooked and FAN is a great way to play the entire sector.