Four ETFs to Watch This Week: XRT, XHB, USO, XLI

February 13, 2012, 10:25 am ET, BY Thomas Kee - | Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

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As the Q4 earnings season begins to wind down, there will still be plenty of trading opportunities to be had. The economic calendar in particular is packed this week. There are several sectors that are likely to be impacted as the news is reported. Here are four ETFs for traders to watch in the coming days.

The Pulse of the Consumer

On Tuesday morning, retail sales for the month of January are due out. In 2011, sales for the month rose by 0.3%. Any uptick will be welcomed at this point in light of the revelation by the Department of Commerce that retail sales dropped by 0.2% in December when the purchases of automobiles are excluded.

Traders have been unfazed so far in 2012 by concerning trends as the SPDR S&P Retail ETF (NYSE: XRT) has risen 9.2% since the beginning of the year. Not everybody is sold on the rally by global equity markets however. “I do not trust it,” Tom Kee Jr., President and CEO of Stock Traders Daily, wrote in a recent research note to paid subscribers. “There is a short opportunity coming, the question is when.”

On Wednesday morning, NAHB Housing Market Index data will be released. The index has been on a roll as it rose for the fourth consecutive month last month. It is now at its highest level since June of 2007. The SPDR S&P Homebuilders ETF (NYSE: XHB) has responded with an 18.1% surge to kick of 2012.

Century Mark

Another key report that will be released on Wednesday is crude inventories. The Department of Energy said that U.S. stockpiles rose by 304,000 barrels for the week ended February 3rd.

The spike in inventories has done little to repress oil’s march towards $100 per barrel. As Greece moves closer towards a deal on austerity and jobless claims in the U.S. continue to decline, oil bulls like their outlook. The United States Oil Fund (NYSE: USO) has gained 3.2% during the last five trading sessions.

One other ETF for traders to keep a close eye on this week is the Industrial Select Sector SPDR ETF (NYSE: XLI). A report on industrial production for January is set to drop on Wednesday. This metric rose by 0.4% in December as manufacturing companies benefitted from demand from emerging markets. XLI is up 10.5% so far this year.

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