XLI Poised to Soar
Published 6/21/2011 2:37 p.m. EDT
The popular SPDR Select Industrial ETF (XLI) continues to trek upward this afternoon in the wake of positive global trading and news from the Paris Air Show, which is well known among aviation enthusiasts as well as industrial stock traders. The event provides a forum for large firms such as Boeing (BA) and Airbus to discuss industry conditions.
Industry insiders have been predicting a good showing for aircraft orders, and Airbus already started on a positive note Monday. General Electric (GE) also placed a large order for "new engine option" (NEO) models.The "NEO" models are designed to address the issue of fuel savings. In a year when oil prices have wildly fluctuated, energy continues to be a hot topic. The Paris Air Show ends on Sunday, but positive news from top XLI components, including BA and GE, could help to lift the fund higher as the week progresses. The iShares Dow Jones U.S. Aerospace & Defense ETF (ITA) may be a more focused fund, but it lacks the liquidity needed for any kind of short-term trading. At the time of publication, Dion Money Management had no positions in securities mentioned.