TradingMarkets 7 ETFs You Need to Know for Tuesday

With most markets moving higher on the first day of trading in 2010, short term oversold conditions have turned into short term overbought. Buyers were most aggressive in materials exchange-traded funds like the ^UYM^, which gained more than 6% on Monday.

New highs were the norm among equity index ETFs from the blue chip ^DIA^ to the small cap ^IWM^.

Here are 7 ETFs You Need to Know for Tuesday.

Among the top ETF PowerRatings funds going into trading on Tuesday are the many linked to midcap stocks such as the ^VOE^ and the ^IJH^. Both VOE and IJH earned ETF PowerRatings of 8 late in the trading day on Monday are are among the higher rated ETFs for Tuesday’s trading.

Also earning top ETF PowerRatings for Tuesday is the ^XLU^. XLU has closed lower for four days in a row, its most recent two closes both in oversold territory above the 200-day.

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A growing number of country exchange-traded funds are increasingly overbought above the 200-day moving average and may be due for a short term reversal. These include ETFs like the ^ILF^, which has closed in overbought territory above the 200-day moving average for seven consecutive trading days.

The most oversold ETF in the market right now? With sellers most aggressive in the real estate sector, exchange-traded funds like the ^VNQ^ and the ^URE^ are among the most oversold going into trading on Tuesday.

Precious metals were also in high demand on Monday, sending shares of the ^GLD^ higher by more than 2% intraday.

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