ETF Outlook for the Friday June 6, 2014 (EWP, SPY, GLD, ROOF)

ETF Outlook for the Friday June 6, 2014

iShares MSCI Spain ETF EWP

Stocks continue to rally in Europe after the European Central Bank announcement yesterday morning. The Spanish stock market index is up over 1 percent and should send shares of EWP higher on the open this morning. The ETF was up 2 percent yesterday and is closing in on a four-year high at the $46 area. A rally to at least test the old resistance is becoming more likely in the weeks ahead.

SPDR S&P 500 SPY

The S&P 500 tracking ETF closed at yet another all-time high yesterday after gaining 0.65 percent on the session thanks to an afternoon rally. Investors must be bullish on this mornings ever-important monthly jobs number as the volume was above average yesterday ahead of the number. If the number is perceived as negative look for support on SPY at the $192 area in the coming days.

SPDR Gold ETF GLD

Shares of the yellow metal were able to rally yesterday after the European Central Bank lowered the interest rate on three key numbers. The 0.75 percent gain was solid, but the gold bugs were definitely looking for a bigger rally. The inability for gold to rally on days when it typically would be a market leader is extremely bearish in the near-term and why the ETF is a few days from a multi-month low.

IQ U.S. Real Estate Small Cap ETF ROOF

A 1.9 percent rally yesterday for ROOF put the ETF at the best level in two years as the REITs have quietly been outperforming the market. With interest rates low and no near-term catalyst to send them higher, the high-yielding REITs are an attractive investment for income-seeking investors. The ETF concentrates on small cap REITs, which have outperformed their large cap peers in four out of the last five years. The ETF currently pays a 7.45 percent dividend.