High Probability ETF Trading: 7 ETFs You Need to Know for Monday (XLK, IVE, IWD, EPI, INP, FAS)
Strength in technology stocks continued to make a big gainer out of the Nasdaq 100. The ^QQQQ^ closed up more than 2% on Friday, while the index’s leveraged funds such as the ^QLD^ gained more than 4%. These gains in the QQQQ and QLD have helped push the ^QID^ into oversold territory ahead of trading on Monday.
Here are 7 ETFs You Need to Know for Monday
The highest rated exchange-traded fund in our database continues to be the ^XLK^. XLK has closed in overbought territory above the 200-day moving average for five consecutive trading days and is due for a short term pullback.
In addition to the bond and commodity ETFs that have become oversold above the 200-day, exchange-traded funds like the ^IVE^ and the ^VTV^ (below) have also pulled back to levels from which they have historically reversed and moved higher.
Shares of VTV have closed lower for two days in a row, pulling back from their highest closing levels since mid-May.
Also oversold above the 200-day heading into trading on Monday is the ^IWD^.
Selling in Indian equities continues to make the country’s ETFs a source of short term weakness that could attract the attention of short term traders. Closing in oversold territory again on Friday were shares of the ^EPI^ and the ^INP^ (below).
INP closed lower by more than 1% on Friday. Friday also marked the ETF’s second consecutive lower close after reaching all-time highs earlier in the week.
Off more than 4% on Friday and moving closer to oversold territory above the 200-day moving average were shares of the ^FAS^.
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 at TradingMarkets.com.