High Probability ETF Trading: 7 ETFs You Need to Know for Friday (QQQQ, GDX, SLV, PPH, IAU, DGP, XME)

Renewed selling in the gold market was the untold story of trading on Thursday. As we show below, most of the exchange-traded funds that have pulled back into oversold territory above the 200-day moving average are precious metals related.

The major U.S. equity index ETFs remain overbought above the 200-day, including both the ^SPY^ and the ^IWM^.

Here are 7 ETFs You Need to Know for Friday.

The ^QQQQ^ has closed in overbought territory above the 200-day moving average for nine consecutive trading days.

Down 3% ahead of trading on Friday were shares of the ^GDX^ (below).

GDX chart

GDX has closed lower for two days in a row with Thursday’s down close in oversold territory.

Also pulling back by more than 3% on Thursday was the ^SLV^. The pullback in SLV comes after a three-day oversold bounce in the ETF.

A one-day pullback of just over 1% on Thursday was enough to take the ^PPH^ from overbought above the 200-day to oversold.

Down 1% and 2% respectively going into Friday’s open were the ^IAU^ and the ^DGP^ (below).

DGP chart

Like SLV, the pullback in DGP comes after a short-term rally from oversold conditions early in the week.

Pulling back by more than 1% on Thursday, the ^XME^ (below) closed just outside of oversold territory above the 200-day. Any significant selling on Friday will create oversold conditions in the fund.

XME chart

XME had closed in exceptionally overbought territory for two days leading into Thursday’s pullback.

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