ETF Trading: Overbought India and Top Ratings in Semiconductors, Retail
As trading begins on Friday, there are many exchange-traded funds that are set to open with PowerRatings of 9 despite the strength in the previous session. These exchange-traded funds include both sector and index funds, though more of these oversold markets do represent opportunities in the U.S. than they do opportunities in international markets – a few of which are actually overbought heading into Friday’s session.
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Here are 7 ETFs You Need to Know for Friday.
Even with Thursday’s strength, a number of exchange-traded funds have PowerRatings of 9 or higher heading into the final trading day of the week. Included among these ETFs are the ^SMH^, which has earned PowerRatings of 9 for the past two days.
Downgraded by one point, the ^XRT^ will still open with top PowerRatings when trading begins on Friday.
XRT had closed lower for six trading days in a row before rallying by more than 1% on Thursday.
Among the top 10 highest volume exchange-traded funds, the ^SPY^ is one of two ETFs to earn a PowerRatings downgrade after bouncing on Thursday. Even with the downgrade, the SPY remains one of the highest rated funds in our PowerRatings database.
Markets in India are moving closer to levels from which they have historically underperformed. Examples of these overbought conditions in Indian equities can be found in the exceptionally low PowerRatings of Indian ETFs like the ^PIN^ and the ^INP^.
Both PIN and INP have PowerRatings of 2 heading into Friday’s session and are trading below their 200-day moving averages.
Among the higher rated country funds on Friday are the ^EWL^ (below).
Before Thursday’s modest bounce, the EWL had pulled back for three days in a row, all three in oversold territory.
After gaining more than 1%, the ^EWA^ (below) is still one of the highest rated country funds in our database.
Shares of EWA earned a one-point downgrade to 8 and are set to open in neutral territory Friday morning.
David Penn is Editor in Chief of TradingMarkets.com