Markets Pullback to Oversold Extremes on European Debt Fears: 7 ETFs You Need to Know for Tuesday
All 7 of the exchange-traded funds (ETFs) in today’s report have significant historical short term edges as determined by just one of the more than 30,000 quantified trading strategies in The Machine ETF Trader.
For more information on The Machine ETF Trader – including the opportunity to attend a free, all-questions-answered webinar with TradingMarkets CEO and founder, Larry Connors all about The Machine ETF Trader – click the link below.
How to Trade ETFs Using Quantified Strategies – presented by Larry Connors
Here are 7 ETFs You Need to Know for Tuesday
Heading into trading on Tuesday, some of the most oversold exchange-traded funds above the 200-day moving average are country funds like the ^EZA^ and the ^EWU^ (below).
Shares of EWU pulled back by more than 2% in trading on Monday, closing lower for a second session in a row.
Down nearly 3% ahead of Tuesday’s open is the ^EPP^ (below).
The pullback in EPP takes the ETF to its lowest level since late March. EPP was last in oversold territory just a week ago.
Of the two exchange-traded funds representing high yield corporate debt, the more oversold is the ^HYG^. HYG has closed lower for three days in a row, finishing on Monday in oversold territory above the 200-day.
Traders looking for opportunities among leveraged ETFs may want to consider the pullback of well over 2% in the ^QLD^. QLD has closed lower for two days in a row and is back in oversold territory.
Sellers have been active in most sectors, including energy where exchange-traded funds like the ^OIH^ (below) pulled back by as much as 2% going into trading on Tuesday.
OIH was last in oversold territory a week ago Tuesday, when a three-day pullback led to a three-day rally in the fund.
Down more than 1% and closing lower for a second consecutive session above the 200-day was the ^IWM^.
Don’t forget to join Larry Connors TODAY at 1 p.m. Eastern for a special online presentation: How to Trade ETFs Using Quantified Strategies. To save your spot, click here.
David Penn is Editor in Chief of TradingMarkets.com