Daily ETF Roundup: GLD Pops On Greek Drama, UNG Turns Sour Again

by on February 7, 2012 | ETFs Mentioned:

Stock markets ended the day in green territory as hopes for a Greek debt-deal outweighted the cloud of uncertainty hoovering over the final agreement. On Wall Street, the Dow Jones Industrial Average led the way higher, gaining 0.26% on the day, while the Nasdaq lagged behind, inching higher by just 0.07%. Gains were most abundant in the utilities sector, while the conglomerates slumped in shallow red territory as the trading session drew to a close [see Five New Features On ETFdb.com].

Optimism on the home front was bolstered by better-than-expected economic data; the latest job openings figure came in at 3.4 million, a solid increase from last month’s reading of 3.1 million. Consumer credit data also helped to restore confidence in the economic recovery; the latest report showed that U.S. consumer had increased their debt by a seasonally adjusted $19.3 billion, a slight drop-off from last month’s record $20.4 billion increase. Crude oil futures popped alongside equity markets as economic growth prospects were rekindled. Prices for the precious fossil fuel jumped over $3 on the day, finally settling just below $99 a barrel [see Energy Bull ETFdb Portfolio]. 

The State Street SPDR Gold Trust (GLD) was one of the strongest performers, gaining 1.51% on the day, bolstered by uncertainties surrounding the Greek debt-deal negotiations. After hitting an intraday low at $1,712 an ounce on Tuesday morning, gold futures climbed higher throughout the trading day, settling near the $1,750 level [see also Seven Reasons To Hate Gold As An Investment]. GLD climbed higher as Greek officials have yet to agree to the EU and IMF’s demands which require private-sector wage cuts in addition to a laundry list of other cutbacks. 

The United States Natural Gas Fund (UNG) was one of the worst performers, shedding 3.30% on the day. Natural gas futures resumed their longer-term downtrend today, following yesterday’s rally, as record stockpiles painted a gloomy picture for prices. Although weather conditions have been cooling down a bit, the supply conditions continue to outweigh any bullish prospects for this commodity in the near-term; UNG is down 18% year-to-date [see UNG Returns]. 

As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit taking techniques.

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Disclosure: No positions at time of writing.