High Probability ETF Trading: 7 ETFs You Need to Know for Friday (EWM, EWT, EPI, ERY, SDS, IBB, UDN)
Major equity ETFs like the ^SPY^ and the ^QQQQ^ marched higher on Thursday, and deeper into overbought territory above the 200-day. Both the SPY and the QQQQ gained more than 1% ahead of trading on Friday.
Today’s 7 ETFs You Need to Know focuses on both the most overbought country funds in our database as well as those inverse leveraged ETFs that have become extremely oversold as markets have advanced.
Here are 7 ETFs You Need to Know for Friday.
The most overbought country fund ETF in our database is the ^EWM^. Shares of EWM have closed in overbought territory above the 200-day moving average for ten conseuctive trading days.
Higher for five days in a row after a two-day pullback in late October were shares of the ^EWT^ (below).
EWT is up more than 10% from its last close in oversold territory above the 200-day.
Up nearly 3% on Thursday and climbing deeper into overbought territory above the 200-day was the ^EPI^.
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Pulling back to extreme oversold territory in trading on Thursday was the ^ERY^ (below).
ERY closed down by nearly 9%. The leveraged fund has closed lower for four straight trading days since closing in overbought territory in late October.
Down well over 3% and closing at its most oversold levels since March was the ^SDS^.
Among non-leveraged funds trading above the 200-day, the ^IBB^ (below) is among the most oversold heading into trading on Friday.
Closing lower for three out of the past five days, IBB will need at least another day of selling before it re-enters oversold territory.
The ^UDN^ closed higher for a third straight session, all three in overbought territory above the 200-day.
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David Penn is Editor-in-Chief at TradingMarkets.com.