Heading into trading on Thursday, there is no sector more oversold than the energy sector as traders take profits from a group that has been among the better performing groups in the stock market. Interestingly, the retreat in energy is not limited to oil and gas funds, as the PowerShares Wilderhill Clean Energy Portfolio ETF (noted below) has closed lower for three out of the past four sessions.
Here are 7 ETFs You Need to Know for Thursday.
Down two days in a row and oversold above the 200-day moving average are both the ^IEZ^ and the ^IEO^ (below).
The breakdown in IEO takes the fund below its short-term trading range, a range that developed over the first half of the week.
As one additional example of the profit-taking that has arrived in the energy sector is the move in the ^XLE^. XLE pulled back by more than 1% on Wednesday to close in oversold territory after closing in overbought territory just one day before.
Special to 7 ETFs You Need to Know: The TradingMarkets Swing Trading College Summer Session begins soon. For more information, click here to save your spot at Larry Connors’ free upcoming online presentation on one of the most popular and comprehensive trader training programs available.
Pullbacks in energy aren’t just for fossil fuel funds anymore. Consider the ^PBW^ (below).
PBW has closed lower for three out of the past four trading days, two of which have been in oversold territory above the 200-day.
Traders looking for leveraged opportunities in the energy patch may want to consider the pullback in the ^DIG^ (below).
Like XLE, shares of DIG pulled back from overbought territory above the 200-day to oversold territory above the 200-day in a single session.
Down two days in a row and oversold is the ^KOL^.
Up seven days in a row and increasingly overbought above the 200-day is the ^IWM^.
David Penn is Editor in Chief of TradingMarkets.com.