High Probability ETF Trading: 7 ETFs You Need to Know for Thursday (OIH, DBO, OIL, EWY, EWT, IYZ, EWZ)
The major market equity index ETFs in the United States returned to overbought territory, with the ^SPY^, the ^QQQQ^ and the ^IWM^ all overbought above the 200-day.
Buyers continue to return to emerging markets ETFs, helping funds like the ^EWS^ rally from oversold lows and funds like the ^FXI^ climb back above their 200-day moving averages.
Here are 7 ETFs You Need to Know for Thursday
Oil-commodity funds – as opposed to oil equity exchange-traded funds like the ^OIH^ – remain among the most oversold ETFs in our database heading into trading on Thursday. Currently oversold above the 200-day are such ETF markets as the ^DBO^ and the ^OIL^.
Still trading in oversold territory above the 200-day moving average is the ^EWY^ (below).
Shares of EWY have closed lower for seven out of the past eight trading days – six in oversold territory.
Trading just outside of oversold territory above the 200-day moving average is the ^EWT^ (below).
EWT has closed higher for the past two days in a row, with Wednesday’s close pulling the fund up out of oversold territory.
Also just outside of oversold territory above the 200-day is the ^IYZ^ (below).
IYZ has pulled back for three days in a row heading into trading on Thursday. Any significant selling on Thursday likely will take the IYZ into oversold territory above the 200-day.
The recovery in emerging markets can be seen in the exceptionally overbought status of emerging markets ETFs like the ^EWZ^. EWZ was up more than 1% in trading on Wednesday, closing higher for a fourth consecutive trading day and continuing to make progress above the 200-day moving average.
With 7 professional, quantified trading strategies for trading both bull and bear markets, High Probability ETF Trading by Larry Connors and Cesar Alvarez was voted one of the top 10 trading books of 2009 by SFO Magazine. Click here to find out why.
David Penn is Editor in Chief of TradingMarkets