High Probability ETF Trading: 7 ETFs You Need to Know for Friday (UYG, IYF, VGK, SPY, KOL, EWP, GDXJ)

Short term oversold conditions have resulted in a bounce early in trading on Friday, with a number of ETFs that had been pulling back heading into Friday’s trading up significantly in the first hour of the session.

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Here are 7 ETFs You Need to Know for Friday.

Among those exchange-traded funds that have pulled back to just outside of oversold territory above the 200-day moving average as of Thursday’s close are a number of financial funds such as the ^UYG^ and the ^IYF^ (below).

IYF chart

Shares of the IYF are up early in trading on Friday, climbing to just outside of overbought territory.

A two-day pullback in the ^VGK^ was enough to bring out the buyers on Friday. The fund rallied by well over 1% within the first hour of trading.

Also up early in the wake of a two-day retreat into oversold territory above the 200-day moving average were shares of the ^SPY^ (below).

SPY chart

The SPY’s two consecutive closes in oversold territory on Wednesday and Thursday represented the first two back-to-back oversold closes in the fund since mid-November 2010.

If the selling on Friday continues in the ^KOL^, then the commodity-based ETF is likely to close lower for a fifth straight session on Friday. All five of those closes have been in oversold territory above the 200-day moving average.

Although there are a number of country funds that had pulled back into oversold territory above the 200-day heading into trading on Friday, one fund – the ^EWP^ – is the most overbought country fund in our database. EWP has closed higher for seven straight sessions heading into Friday’s trading.

Buyers appear to be moving cautiously back into gold exchange-traded funds. Still oversold above the 200-day moving average – but off its intraday lows – is the ^GDXJ^ (below).

GDXJ chart

GDXJ had closed lower for four out of the past five trading days heading into Friday’s market.

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David Penn is Editor in Chief of TradingMarkets.com