Posted on 03.12.15 By Big W

If Todays gains hold, we will have a bullish reversal off of the SPX 100 Day Moving average.

The European Central Bank is buying bonds now for the fourth day and the result is lower bond interest rates across the board. Universally across the Euro zone rates are dropping France and Germany actually have some short dated bonds with a negative rate of return. The countries with the higher rates are seeing them drop and subsequently are able to re-finance their older debt at much lower rates, this is allowing some countries like Portugal the ability to repay bailout loans much easier. That coupled with the weaker Euro should spur economic activity and stimulate growth as well as corporate investment. Now may be a terrific time to invest in Europe. Here are some popular ETFs to consider.

iShares MSCI EMU Index Fund (EZU)

First Trust Europe AlphaDEX ETF (FEP)

Deutsche X-trackers MSCI Europe Hedged Equity ETF (DBEU)

Wisdomtree International Hedged Equity Fund (HEDJ)

The US is on the polar opposite side of what is happening in Europe, our Dollar has been getting stronger by the day, and the threat of the Fed raising rates will continue to allow the dollar to strengthen even more. For now the dollar looks to have hit some resistance here at the 100 level. Going sideways or down for a while would be a welcome relief for many traders who are hopeful for a commodity rebound. Even though US bond buying has stopped, the 10 year treasury yield remains low helping the housing market recover. Cheap mortgages are very much still available and should help home sales surge now that Spring weather is almost here. Here are two home builder ETFs to consider.

SPDR S&P Homebuilders ETF (XHB)

iShares US Home Construction (ITB)

Transportation has been consolidating since December and perhaps now or soon should be concidered as well for additional gains. Normally we would expect to see seasonal strength from October to May, I believe this group still owes us some upside. Here is a way to play that.

iShares Transportation Average ETF (IYT)

Remember if you do not want to trade or hold ETFs you can always look up their holdings as a way to find individual company stocks to play instead.