High Probability ETF Trading: 7 ETFs You Need to Know for Friday (KBE, RKH, EWD, DBO, GDX, GLD, EWC)
With the stock market in the U.S. with a slight overbought bias, traders and investors have been taking some profits in sectors like financials, helping ETFs representing those markets to move lower here at the end of the week. Oil-commodity funds continue to experience significant selling pressure, while buyers have pushed gold bullion and gold mining ETFs to new, short-term, overbought highs.
Here are 7 ETFs You Need to Know for Friday.
As I mentioned in 7 Stocks You Need to Know for Friday, there has been some profit-taking in financials late in the trading week. This has helped pull a number of financial ETFs, like the ^KBE^ and the ^RKH^ (below) to or near oversold territory above the 200-day moving average.
Shares of RKH have closed lower for two out of the past three trading days, and are now trading on the edge of being oversold. In fact, any significant selling on RKH on Friday will find the stock in oversold territory.
Pulling back for three out of the past four trading days is one of the most oversold country funds in our database for Friday: the ^EWD^.
Oil commodity-based ETFs – as opposed to oil equity funds – continue to feel selling pressure here at the end of the week. Closing lower for a fifth day out of the past six on Thursday were shares of the ^DBO^.
Sellers have been aggressive in oil funds. But when it comes to gold funds – bullion-based and mining stock based – it is a world in which buyers remain in control. Closing in overbought territory above the 200-day moving average are a number of gold-related funds such as the ^GDX^ and the ^GLD^ (below).
Shares of GLD are up four days in a row and have closed in overbought territory above the 200-day moving average for the past three consecutive trading sessions.
If Sweden is currently among the most oversold markets, then Canada – basis the ^EWC^ (below) – is among the most overbought.
EWC has closed higher for five out of the past six trading days, with five of those closes in overbought territory 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.com