ETF Trends
ETF Trends

On Friday, the Dow Jones Industrial Average briefly crossed the 11,000 mark before retreating. Today, it’s topped the milestone and – for now – it’s staying put. Exchange traded funds (ETFs) like the direction the markets are headed.

One day we’re worried about Greece; the next, no so much. Today, it’s the latter. A loan agreement has been pulled together by European leaders, who will make $40.5 billion available to the country if needed. The International Monetary Fund (IMF) may kick in another $13.5 billion. Interest rates on the money would be below what private lenders wanted in recent days to hold Greek debt. The plan lifted the euro, which has been kicked around since the worries first appeared. CurrencyShares Euro Trust (NYSEArca: FXE) is up 0.7% this morning. [The U.S. Dollar’s Next Move.]

Earnings season begins today after the market’s close, when Alcoa (NYSE: AA) will report their first-quarter results. Many expect the report to be a strong one, thanks to a rally in the metals markets combined with U.S. dollar weakness. iShares Dow Jones U.S. Basic Materials (NYSEArca: IYM) is flat today; Alcoa is 3.5%. [Why You Should Plug Into the Copper ETF Rally.]

Thanks to all the optimism, the VIX has dropped to its lowest level since July 2007. The VIX is a measure of volatility in the market and is a signal of how traders are feeling. Long-dated VIX futures are trading at a premium. iPath S&P500 VIX Mid-Term Futures ETN (NYSEArca: VXZ) is flat today. [How to Play the VIX with ETFs.]

Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.