High Probability ETF Trading: 7 ETFs You Need to Know for Friday (XLB, UYM, DJP, GLD, DGP, FAZ, ITB)

Growing overbought conditions accompanied the stock market’s advance on Thursday. Leading the major equity index ETFs higher was the ^SPY^, up more than 1%.

With the stock market continuing to advance, the few exchange-traded funds in oversold territory above the 200-day moving average have tended to be bond ETFs. Typical of the pullback in bond ETF is the multi-day retreat in the ^BND^.

Here are 7 ETFs You Need to Know for Friday.

Commodities and basic materials funds continue to attract buyers. Climbing higher into overbought territory ahead of Friday’s open were shares of the ^XLB^ and the ^UYM^ (below).

UYM chart

Shares of UYM have closed higher for two days in a row, advancing by more than 3% in trading on Thursday.

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Traders looking for general commodity market exposure rather than opportunities in specific commodities may want to keep an eye on ETFs and ETNs like the ^DJP^.

DJP chart

Like UYM, DJP has also closed higher for the past two consecutive trading days.

A number of gold ETFs have moved into neutral territory above the 200-day moving average. These funds include the ^GLD^ and the ^DGP^ (below).


Shares of the DB Gold Double Long ETN have closed higher for three days in a row before Thursday’s pause.

Pulling back toward exceptionally oversold levels ahead of the final trading day of the week was the ^FAZ^. FAZ retreated by more than 7% on Thursday.

Increasingly overbought below the 200-day moving average on Thursday was the ^ITB^.

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David Penn is Editor in Chief of TradingMarkets.com