High Probability ETF Trading: 7 ETFs You Need to Know for Friday (IEV, EZU, USO, OIL, UUP, SMH, XRT)
With Wednesday’s rally, bond exchange-traded funds such as the ^AGG^ and the ^BND^ are among the most oversold ETFs heading into trading on Friday.
Retail and technology continue to attract buying interest – and increasingly overbought conditions – while sellers remain active in country-based ETFs, especially those with exposure to Europe.
Note that U.S. stock markets will close at 1 p.m. Eastern today on Friday.
Here are 7 ETFs You Need to Know for Friday.
Up more than 1% and closing just outside of oversold territory ahead of Friday’s trading was the ^IEV^.
The most oversold exchange-traded funds trading above the 200-day moving average going into trading on Friday is the ^EZU^ (below)
Shares of EZU closed higher on Wednesday. But the fund has still closed in oversold territory for two days in a row.
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While bonds are the most oversold asset class in the short-term, commodities – particularly oil – are one of the most overbought asset classes right now. Up more than 3% on Wednesday were both the ^USO^ and the ^OIL^.
The dollar continues to advance, with the ^UUP^ (below) closing higher for a third consecutive trading day.
UUP has closed higher for three days in a row heading into Friday’s trading. The ETF was in oversold territory as recently as one week ago.
Up 2% and increasingly overbought above the 200-day moving average on Wednesday was the ^SMH^ (below).
The SMH has closed higher for five out of the past six trading days.
Retail continues to be the most overbought sector in the stock market. Closing higher for a sixth day in a row and up more than 1% ahead of trading on Friday were shares of the ^XRT^.
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David Penn is Editor in Chief of TradingMarkets.com