High Probability ETF Trading: 7 ETFs You Need to Know for Monday (GDX, SLV, QQQQ, SPY, VB, ITB, XHB)
Heading into trading on Monday, oversold conditions characterize a number of ETF markets both inside the United States as well as around the world.
From sector perspective, pullbacks appear to just be beginning in financial markets, while exchange-traded funds based on energy and oil have already reached extreme oversold conditions in many instances.
Here are 7 ETFs You Need to Know for Monday.
Precious metals-related exchange-traded funds continue to be among the most oversold ETFs in our database. This includes both gold – the ^GDX^ – and silver – the ^SLV^ (below).
SLV has closed lower for five trading days in a row heading into Monday’s open. The ETF’s last four closes have all been in oversold territory above the 200-day moving average.
While the ^QQQQ^ remains in overbought territory above the 200-day moving average, the ^SPY^ has moved to just outside of oversold territory as a result of two consecutive selling days.
Any significant selling in the SPY over the next day or two will likely take the fund down to oversold levels by midweek.
Also trading just outside of oversold territory above the 200-day moving average is the ^VB^. Shares of VB have closed lower for three out of the past four trading days.
Among the most overbought ETFs in our database are a pair of funds relating to the housing market. These ETFs are the ^ITB^ and the ^XHB^ (below).
Shares of XHB have closed higher for three days in a row going into trading on Monday. The ETF’s last two closes have been in overbought territory above the 200-day moving average.
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