Prudent Buying After Panic Selling

by on June 6, 2011 | ETFs Mentioned:

Investors poured into U.S. Treasuries last week as far worse than expected economic data from the manufacturing and housing sectors sent waves of anxiety through equity markets both in the U.S. and abroad. Surprisingly enough, amidst all the chaos even gold failed to climb much higher and the precious metal closed just above $1,540 for the week.

Volatility in the energy market remains abundant as crude oil futures wildly fluctuated between $98 and $103 a barrel, managing to close just above the $100 level by the end of the trading week. Silver failed to regain the $40 level and futures contracts sank lower by about $2 throughout the week, closing at around $36.28 an ounce. As expected, the U.S. dollar continued to depreciate and we are cautiously holding our ground in anticipation of an equity-market rebound in the coming days. Against this backdrop, we see several technicals-based opportunities among the ETF universe, including a very appealing commodity trade with attractive upside over the coming weeks, as well as two foreign sector funds that seem likely to climb higher as equity markets regain their footing:

Weekly Outlook

The coming week is extremely light in terms of domestic economic data releases, while a number of central bank meetings and GDP reports across the globe will likely dominate the international stage [see calendar]. Below we highlight several ETFs that may see increased trading activity over the next week as investors digest relevant market news:

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