High Probability ETF Trading: 7 ETFs You Need to Know for Friday (GDX, EWA, EZU, RTH, SPY, QQQQ, FAZ)
Gold funds and country/regional-based exchange-traded funds are among the most oversold funds heading into the final trading day of the week. Many of these gold ETFs, in particular, have been featured here in 7 ETFs You Need to Know over the past few days as the pullback in gold has accelerated.
Here are 7 ETFs You Need to Know for Friday.
The most oversold exchange-traded fund in our database, for example, is a gold fund: the ^GDX^, which has closed lower for four days in a row.
Down three trading days in a row is the ^EWA^ (below).
The pullback in EWA comes just after the ETF had hit a new intermediate high, its highest level since early November.
Also closing lower for the past three trading days is the ^EZU^. EZU is based on the equity markets of the countries that are a part of the European Monetary Union (EMU).
In addition to the retail-related exchange-traded funds mentioned in yesterday’s 7 ETFs You Need to Know, the ^RTH^ (below).
Shares of RTH have pulled back for three days in a row, pulling back by another 1% ahead of trading on Friday.
The ^SPY^ has pulled back to just outside of overbought territory above the 200-day moving average. Any additional significant selling in the market for SPY could bring the fund down to levels from which it has historically reversed.
By contrast, the ^QQQQ^ (below) continues to trade in overbought territory above the 200-day, closing in overbought territory for three out of the past four trading days.
The QQQQ had pulled back to oversold territory as recently as the end of December, when a two-day pullback helped provide the oversold conditions that have led to the fund’s recent short term advance.
The pullback of more than 1% in the ^FAS^ has helped relieve overbought conditions in that exchange-traded fund heading into the final trading day of the week.
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David Penn is Editor in Chief of TradingMarkets.com