“As long as companies can beat the lowered estimates – and the bar is definitely set low – they should be rewarded. On the flip side, if they miss, they will be just as much punished,” Detrick added.
The top three unleveraged ETFs this week were Guggenheim Global Solar Energy (NYSEArca: TAN), Global X FTSE Colombia 20 ETF (NYSEArca: GXG) and PowerShares Golden Dragon China Portfolio (NYSEArca: PGJ) with gains of 5% or more.
The bottom three unleveraged ETFs this week were iPath US Treasury 10-year Bear ETN (NYSEArca: DTYS), iShares MSCI Taiwan Index Fund (NYSEArca: EWT) and UBS E-TRACS CMCI Silver ETN (NYSEArca: USV) with declines of over 3%.
In next week’s economic data, look for reports on new and existing home sales, durable goods orders and consumer sentiment.
Full disclosure: Tom Lydon’s clients own QQQ, SPY and IWM.