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Market Moving ETF Update


The theme to this Weekly Market Report will be Exchange Traded Funds or ETF's as they are often called by most traders and investors. An exchange traded fund is a security that trades just like a stock. The ETF will usually track an index or specific sector in the market by holding a basket of individual securities.

The PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQQ) ended the week slightly higher ahead of the Christmas holiday. Since late August the technology heavy QQQQ's has rallied higher by over 20.0 percent. While the QQQQ's remain in a strong weekly uptrend there will be important daily chart price resistance levels approaching soon. Traders and investors should watch the $55.50 area for the next major daily resistance area. The weekly resistance levels will be at $60.00, and next at the $63.30 level. This week is the period between the Christmas and New Years holiday. This is usually a very light volume time in the markets which normally trade sideways to slightly higher. Therefore, unless a major geopolitical event occurs we would not expect much downside action. The top five holding in the QQQQ is
Apple Inc. (NASDAQ:AAPL) 19.74%, Google Inc. (NASDAQ:GOOG) 4.73%, Qualcomm Inc. (NASDAQ:QCOM) 4.50%, Microsoft Corp. (NASDAQ:MSFT) 4.09%, and Oracle Corp. (NASDAQ:ORCL) 3.17%.




The Oil Service HOLDRs (ETF) (NYSE:OIH) is a basket of the leading oil services companies. This index has soared higher by 40.0 percent since the announcement of quantitative easing by the Federal Reserve Bank in late August. The OIH remains in a strong uptrend, however, it has stalled out around the $139.00 daily chart resistance level. Should the OIH trade above this current resistance area the $145.00, and $151.00 levels will be the next major resistance levels. Traders should watch for pullbacks around these important price points. The top five holdings for the OIH are Schlumberger Limited. (NYSE:SLB) 20.12%, Baker Hughes Incorporated (NYSE:BHI) 13.07%, Halliburton Company (NYSE:HAL) 12.60%, Transocean LTD. (NYSE:RIG)11.42%, and National-Oilwell Varco, Inc. (NYSE:NOV) 8.62%.




The Market Vectors Junior Miners ETF (NYSE:GDXJ) remains in a correction after staging a 4.00 point sell off last week. The daily chart does have support around the $37.50 level which was tagged on Friday. Should this support area fail to hold the next important weekly support levels will be $35.25, and $32.50. Due to the light holiday volume it would be prudent to expect a small bounce off the current $37.50 area. The top five holdings in GDXJ are Semafo Inc. 5.16%, Allied Nevada Gold Corp. (AMEX:ANV) 4.29%, Alamos Gold Inc. 3.94%, Detour Gold Corporation 3.64%, and Coeur D'Alene Mines Corp. (NYSE:CDE) 3.61%. As long as central banks continue to print money at alarming rates gold, and gold miners will be a buy again at important support levels.




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