High Probability ETF Trading: 7 ETFs You Need to Know for Friday (IAU, IYF, UYG, EEM, QLD, EWC, XLP)
Sellers continued to be aggressive in both gold and financial markets, sending both the ^GDX^ and the ^FAS^ lower for three and four consecutive trading days, respectively.
By contrast, the major equity index ETFs, such as the ^QQQQ^ and the ^IWM^ both rallied to close back in overbought territory above the 200-day.
Here are 7 ETFs You Need to Know for Friday.
Profit-taking in gold-related exchange-traded funds continues to be strong. In addition to the two gold ETFs noted in yesterday’s 7 ETFs You Need to Know, the ^IAU^ has also pulled back into oversold territory above the 200-day moving average, closing below that level for a second straight session on Thursday.
Financial ETFs are also among those becoming increasingly oversold above the 200-day moving average. This includes both regular, non-leveraged ETFs like the ^IYF^, and the 2-to-1 leveraged ^UYG^ (below).
The UYG has closed lower for four trading days in a row heading into trading on Friday.
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Any significant selling on Friday will likely take the ^EEM^ (below) into oversold territory above the 200-day.
EEM was last oversold a week ago, as a four-day pullback led to a short-term rally in the fund.
The ^QLD^ rallied into strength on Thursday after a one-day pullback into oversold territory.
Among the country funds pulling back into oversold territory ahead of Friday’s trading is the ^EWC^ (below).
Shares of EWC have closed lower for three days in a row as of the end of day Thursday.
While buyers have become more aggressive in the ^XLP^, the fund has been under steady accumulation for the past several days. Having closed higher for eight days in a row, XLP is the most overbought ETF in our database.
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David Penn is Editor in Chief of TradingMarkets