High Probability ETF Trading: 7 ETFs You Need to Know for Monday (VNQ, URE, FXI, EWJ, EWY, UNG, OEF)
With the ^SPY^, the ^QQQQ^ and the ^IWM^ all trading in neutral territory going into the first day of November, high probability traders may find themselves looking offshore to the more oversold markets of Asia for exchange-traded funds that have become oversold above the 200-day.
Gold and gold mining ETFs continue to make impressive gains following their pullbacks into oversold territory earlier this week. Up for two days in a row and more than 1% respectively on Friday were both the ^GLD^ and the ^GDX^.
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.
Here are 7 ETFs You Need to Know for Monday.
Real estate and REIT-related exchange-traded funds remain among the most oversold by sector heading into trading on Monday. This includes ETFs like the ^VNQ^ and the ^URE^ (below).
Shares of the URE have closed in oversold territory above the 200-day moving average for four consecutive trading days.
The ^FXI^ continues to be among the more oversold country funds in our database. The ETF has closed in oversold territory above the 200-day for the past three days in a row.
Closing in oversold territory above the 200-day for three out of the past four trading days on Friday were shares of the ^EWJ^ (below).
The EWJ nearly crossed below its 200-day moving average on an intraday basis last week. The ETF continues to trade above that long-term moving average, having spent most of the summer below it. EWJ has traded consistently above its 200-day since the beginning of October.
Another Asia-based country fund that has pulled back into oversold territory is the ^EWY^.
The ^UNG^ closed higher for a fifth consecutive trading day on Friday, and are likely to open overbought below the 200-day on Monday.
Back in oversold territory above the 200-day moving average as of Friday’s close were ^OEF^ (below).
The OEF closed in oversold territory last Wednesday and managed to climb out of oversold territory on Thursday. If there is follow-through trading to the downside on Monday, then Friday’s pullback will have been the first sign of a potential sell-off in the blue chips of the S&P 100.
Find out why more and more traders are turning to exchange-traded funds (ETFs) in the latest interview with TradingMarkets CEO and founder, Larry Connors.
Trading ETFs by Mastering Probabilities.
Available now for free at Investor’s Business Daily. Click the link above to access the interview.
David Penn is Editor-in-Chief at TradingMarkets.com.