Retail ETF in Stellar Form This Week

SPDR S&P Retail was outperforming the broader market this week on the strong earnings reports from major retailers.
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NEW YORK (

TheStreet

) -- Here's a look at how the "Five ETFs to Watch" from Monday did this week and where they may be headed next week.

SPDR S&P Retail

(XRT) - Get Report

Shares were up 1.3% through Thursday as retailers continued to exhibit the same strength witnessed last quarter that helped XRT outperform the broad market throughout the week.

Powering the fund were earnings reports from some of the industry's biggest names. Some of the more notable reports came from home décor provider,

Bed Bath and Beyond

(BBBY) - Get Report

, which saw profit increase by 60%,

Pep Boys

(PBY) - Get Report

, which recorded its first annual profit since 2005, and

Gap

(GPS) - Get Report

, which saw its biggest sales increase in a decade.

Looking to next week, it appears particularly quiet on the earnings calendar front. However, investors should keep an eye on the retail sales report scheduled for release early Wednesday morning.

Market Vectors Agribusiness

(MOO) - Get Report

As scheduled, seed giant Monsanto reported its second quarter earnings this week and it was anything but optimistic. The company not only saw a 19% drop in earnings but it also stepped back from its bold 2007 prediction that by 2012 it would double its gross profit.

2010 has not been kind to Monsanto and this poor report won't help matters. MOO has felt the heat as this top holding has tumbled. The fund, which is lagging the broad market, has slipped in both long and short momentum rankings, with its shares off 0.8% so far this week.

With MOO is treading close to its 50-day moving average, investors should keep an eye on this level next week as to see if the fund can bounce back.

Market Vectors Steel

(SLX) - Get Report

This week, the transition to a quarterly iron-ore pricing system from the traditional annual method was all but finalized when Rio Tinto, the last of the big three iron ore producers, joined Vale and BHP Billiton on Friday in agreement over the shift. This should help the nearly 25% of SLX's portfolio dedicated to miners power higher.

Going forward, I feel that SLX, which was up 1.1% in the first four days of trading this week, still has some room to run. Be sure to check out the

video

and

article

I put together Wednesday, where I laid out the framework for what I feel is a strong fundamental story for SLX and the steel industry.

iShares South Korea

(EWY) - Get Report

Posco

(PKX) - Get Report

is scheduled to report earnings next week. Shares of EWY drifted higher by 0.9% for the week through Thursday.

While Posco remained in the headlines due to the

Peabody

(BTU) - Get Report

bid for Australian coal miner Macarthur (Posco is a major shareholder in Macarthur), this development in the coal industry means that short-term focused investors should turn their eyes from EWY to

Market Vectors Coal

(KOL) - Get Report

.

Peabody saw both its initial bid last week and a second higher bid this week rejected. However, one of the stipulations in Peabody's bid was that Macarthur would delay a shareholder vote on the takeover of Gloucester Coal. That did indeed happen today, and Macarthur shares jumped more than 8% in Australia after another Australian coal miner, New Hope, outbid Peabody. Also, there are reports that Xstrata approached a major shareholder in Macarthur.

Peabody is the largest holding in KOL, with 7.4% of assets. Macarthur accounts for 1.9% and New Hope 1.2%. Expect these firms to stay volatile, but most likely positive in the week ahead, because even

Massey's

(MEE)

big drop caused by its mine disaster failed to derail KOL as it headed for a positive week.

CurrencyShares Japanese Yen

(FXY) - Get Report

.

Despite the Japanese yen gaining against the U.S. dollar this week, it was an otherwise uneventful week with eyes more focused on Greece and possible currency revaluation in China. FXY was up 0.6% in the week through Thursday.

-- Written by Don Dion in Williamstown, Mass.

At the time of publication, Dion was long Market Vectors Agribusiness.

Don Dion is president and founder of

Dion Money Management

, a fee-based investment advisory firm to affluent individuals, families and nonprofit organizations, where he is responsible for setting investment policy, creating custom portfolios and overseeing the performance of client accounts. Founded in 1996 and based in Williamstown, Mass., Dion Money Management manages assets for clients in 49 states and 11 countries. Dion is a licensed attorney in Massachusetts and Maine and has more than 25 years' experience working in the financial markets, having founded and run two publicly traded companies before establishing Dion Money Management.

Dion also is publisher of the Fidelity Independent Adviser family of newsletters, which provides to a broad range of investors his commentary on the financial markets, with a specific emphasis on mutual funds and exchange-traded funds. With more than 100,000 subscribers in the U.S. and 29 other countries, Fidelity Independent Adviser publishes six monthly newsletters and three weekly newsletters. Its flagship publication, Fidelity Independent Adviser, has been published monthly for 11 years and reaches 40,000 subscribers.