How many major sectors of the U.S. economy are riding above their respective long-term, 200-day trendlines? Three out of the big 10 can make that claim.
Not surprisingly, Defensive Equity ETFs like SPDR Select Sector Utilities (NYSEARCA:XLU) and SPDR Select Sector Staples (NYSEARCA:XLP) made the cut. More surprisingly, however, SPDR Select Sector Technology (NYSEARCA:XLK) may be on the verge of a big time break-out.
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In spite of Apple’s (NASDAQ:AAPL) high-profile earnings “miss,” XLK continues its Q4 march higher. And there’s more. Tech corporations from China may soon be on the move, giving investors reason to consider Global X China Technology ETF (CHIB) or Guggenheim China Technology ETF (NYSEARCA:CQQQ).
Equally worthy of examination, resource-rich countries that export to China are outpacing the vast majority of stock ETFs in October. With China already seeing GDP growth taper off as well as inflation simmer down, there is a high likelihood that China will end its year-and-a-half long period of fiscal and monetary tightening. If that happens, Country ETFs servicing mainland needs -- Australia (NYSEARCA:EWA), Malaysia (NYSEARCA:EWM) as well as Indonesia (NYSEARCA:IDX) – may kick into hyper-drive.
Disclosure: Gary Gordon, MS, CFP is the president of Pacific Park Financial, Inc., a Registered Investment Adviser with the SEC. Gary Gordon, Pacific Park Financial, Inc, and/or its clients may hold positions in the ETFs, mutual funds, and/or any investment asset mentioned above. The commentary does not constitute individualized investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial, Inc. or its subsidiaries for advertising at the ETF Expert web site. ETF Expert content is created independently of any advertising relationships.