3 Mid-Week ETF Trades To Consider

We're about halfway through the biggest quarter of the Q1 earnings season and things are starting to look modestly more optimistic than originally thought. The real action is about to begin tonight as Facebook (FB), Tesla (TSLA), Microsoft (MSFT), Visa (V), Xilinx (XLNX) and PayPal (PYPL) set to report and Amazon (AMZN), Intel (INTC) and ExxonMobil (XOM) coming later in the week.

Here are three ETF trades to consider for the remainder of this week...

Global X Social Media ETF (SOCL)

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Social media stocks have been rallying for much of the year but Twitter (TWTR) and Snap (SNAP) have raised the group's profile. Snap is sliding back after yesterday's rally but Twitter has rocketed ahead on double digit monetizeable daily average user growth. It's all about Facebook's report tonight though. The stock is more than 10% of SOCL (and 15-20% of most communication services sector ETFs) so this fund could be a big mover on Thursday. A revenue and earnings beat are probably very likely although I'm less optimistic on Facebook's forward guidance. I'd be inclined to reduce holdings here.

ETFMG Prime Mobile Payments ETF (IPAY)

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IPAY has been an outperformer for about three years now as the massive migration to mobile and digital payment solutions continue. Visa and PayPal which have been at the forefront of the movement report earnings tonight and I expect both to indicate strong growth again. IPAY's rally has pushed it into overbought territory somewhat but I'm choosing to ride the momentum here.

Healthcare Select Sector SPDR ETF (XLV)

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The healthcare sector now trails the S&P 500 by about 16% year-to-date and the group is considered toxic by many but I'm a contrarian. Healthcare looks like an ideal buy low candidate for a few reasons. First, earnings and revenue growth for Q1 are both positive during a time when many sectors are reporting negative growth. Balance sheets are healthy and cash flows are still strong. Most of the negative sentiment stems from debate coming out of Washington where Medicare For All and healthcare reform are rising to the forefront again. I'm doubtful that reform will be implemented any time soon and the sell-off is overdone. At 15 times earnings, valuations look attractive. For a more specialized play, consider the biotech sector. It trades even cheaper.

Disclosure: None. 

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