High Probability ETF Trading: 7 ETFs You Need to Know for Friday (DIG, XRT, RTH, EWW, IWM, EWJ, JNK)
With the premarket futures pointing to a strong open and the potential for follow-through to the upside, traders will still have a number of oversold markets to choose from, including pullbacks in Latin American country funds and continuing weakness in consumer discretionary stocks like retail.
After a three-day sell-off in the major U.S. equity index ETFs, most have begun to recover and move up and out of oversold territory ahead of Friday’s open. As noted below, the weakest of the majors is the small cap based iShares Russell 2000 Index Fund ETF.
Here are 7 ETFs You Need to Know for Friday.
Soaring by well over 5% ahead of Friday’s open, the ^DIG^ rallied into strength after a two-day pullback above the 200-day moving average.
Retail stocks are among the most oversold heading into trading on Friday. Closing in oversold territory above the 200-day moving average for a second day in a row was the ^XRT^, while the ^RTH^ (below) has closed lower for three out of the past four.
Thursday’s bounce brings RTH up from its lowest closing level since November 2011.
If you like trading exchange-traded funds, then you’ll love The Machine Lite. With the power of The Machine in a slimmed down format, the Machine Lite is an excellent option for traders and investors looking for ways to use high probability trading strategies to manage and grow their money in an IRA or other retirement account.
To learn more – and to reserve your spot at the next presentation on The Machine Lite – click here now.
The most oversold country fund ahead of Friday’s open is the ^EWW^ (below).
Shares of EWW have closed in oversold territory for three days in a row.
Among the major U.S. equity index ETFs, the ^IWM^ remains in oversold territory above the 200-day.
IWM has closed in oversold territory for six consecutive trading days despite closing slightly higher on Thursday.
After closing lower for four days in a row, the ^EWJ^ rallied by well over 4%. The ETF continues to trade below its 200-day moving average.
Among the ETFs highlighted in 7 ETFs You Need to Know earlier this week, the ^JNK^ gained more than 1% after a three-day pullback that took the fund into oversold territory – including a close below the 200-day.
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