Many global markets have recently broken out of their trading ranges, and Frank Zorrilla of ZorTrades.com, has two specific ETFs on his radar.
Market Vectors Vietnam ETF (VNM) and Market Vectors Coal ETF (KOL) are two ETFs that might be turning the corner and could potentially provide some decent upside performance in the coming weeks to months. Both ETFs have underperformed over the last couple of months, and they could very well continue with their underperformance.
However, I have always found it helpful and profitable to keep an eye out on underperforming indices/ETFs that might be turning the corner in which they go from out favor to in favor because once they turn, they normally trend for a while in the new direction. It's no secret that the biggest profits come right after severe corrections.
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I believe that if VNM stays above $19 and KOL above $21, they might go from out of favor to back in favor. It wouldn't hurt either to look for individual names within the ETF'S (if any) for ideas just like we did a week and half ago with in the steel sector.
By Frank Zorrilla of ZorTrades.com
