High Probability ETF Trading: 7 ETFs You Need to Know for Monday (EWZ, EWP, EWG, SSG, SPY, OIH, OIL)
Moderately overbought conditions are likely to greet traders when the markets open on Monday. Some profit-taking in commodities, especially crude oil, has created oversold conditions in oil-based ETFs and ETNs even as the oil stock funds have remained in neutral territory.
Buyers remain aggressive in technology, with the ^SMH^ adding more than 1% on Friday and closing in overbought territory for the third session out of the past four.
Here are 7 ETFs You Need to Know for Monday.
Among the few country funds trading in oversold territory above the 200-day moving average are the ^EWZ^ and the ^EWP^ (below).
Shares of EWP have been trading above their 200-day moving average since mid-January. Down three in a row heading into trading on Monday, EWP is back in oversold territory for the second time since closing above its 200-day.
Trading just outside of oversold territory above the 200-day are other European-based country funds, such as the ^EWG^. EWG has also closed lower for three consecutive trading days.
Reflecting the continued strength in technology shares, the ^SSG^ retreated to a new, oversold low ahead of trading on Monday.
Closing in overbought territory above the 200-day moving average for three out of the past four trading days is the ^SPY^ (below).
The SPY was last in oversold territory in late January, the result of a sharp, one-day pullback.
While many oil service and energy equity ETFs like the ^OIH^ remain in neutral territorym, commodity-based oil ETFs like the ^OIL^ (below) have sold off much more sharply.
OIL pulled back by more than 2% on Friday, closing lower for the third session out of the past four.
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David Penn is Editor in Chief of TradingMarkets.com