Commodity Prices Weigh on the Market at Midweek, Basic Materials Sell-Off: 7 ETFs You Need to Know for Wednesday

The most aggressive selling in the market right now remains centered around industrial and basic materials, as traders who have been late to take profits find themselves selling into what increasingly looks like a panic.

While precious metals equity related funds have slipped below their 200-day moving average, funds linked to the bullion price of gold and silver, for example, are oversold, but above their 200-day moving averages as noted in today’s report.

Here are 7 ETFs You Need to Know for Wednesday.

While exchange-traded funds like the  ^SPY^ and the ^IWM^ have closed lower for the past three days in a row, the ^QQQ^ (below) managed to rally yesterday after a two-day pullback.

QQQ chart

That said, all three of the exchange-traded funds noted above are in oversold territory heading into trading on Wednesday.

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A number of precious metals ETFs have pulled back below their 200-day moving averages. Among the few that are oversold above that level are the ^GLD^ and the ^IAU^ (below).

IAU chart

Shares of IAU have closed down for three days in a row heading into Wednesday’s trading. In oversold territory for each of the past three days, IAU is nearing its most recent oversold lows from the beginning of the month.

Sellers have been especially aggressive in the market for basic materials and industrial stocks and funds. Closing lower for a fifth day in a row and very oversold – particularly for a leveraged fund – is the ^UYM^ (below).

UYM chart

UYM is leveraged two-to-one to the daily returns of the Dow Jones U.S. Basic Materials SM Index. Among its top holdings are stocks like ^FCX^ and ^NEM^.

Are you keeping an eye on currency prices? Exchange-traded funds are another way for equity traders to participate in the moves of currencies from the Australian dollar to the Japanese yen. Heading into trading on Wednesday, the ^FXE^ has edged higher for a second day following a steep pullback above the 200-day.

David Penn is Editor in Chief of