High Probability ETF Trading: 7 ETFs You Need to Know for Monday (EZA, EEM, VWO, IWM, IWB, XRT, FAS)
Stocks are set to open mixed on Monday, with the ^SPY^ just outside of neutral territory and the ^QQQQ^ still well in oversold terrritory above the 200-day moving average.
A sizable number of country funds are also oversold above the 200-day moving average, including a number of markets in Asia and other emerging countries.
Here are 7 ETFs You Need to Know for Monday.
The most oversold country fund in our database heading into Monday’s open is the ^EZA^. Shares of EZA have closed lower for four trading days in a row.
Along with the EZA, other emerging markets based ETFs have also retreated to oversold territory above the 200-day. This includes the ^EEM^ and the ^VWO^ (below).
Down four in a row heading into trading on Monday, three of those closes in VWO have been in oversold territory.
While the ^IWM^ has pulled back into oversold territory, the ^IWB^ (below), remains just outside of oversold territory.
IWB closed lower on Wednesday and Thursday but, like the SPY, rallied somewhat on Friday to climb back out of oversold territory to end the week.
Also just outside of oversold territory is the ^XRT^ (below).
Unlike many exchange-traded funds that rallied on Friday, the XRT reversed back to the downside. This sets up the potential for the fund to pullback into oversold territory should sellers remain on the offensive when trading begins on Monday.
Following-through to the upside after a two-day pullback with a two-day rally is the ^FAS^. The fund is only recently off its highest levels of the new year.
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