High Probability ETF Trading: 7 ETFs You Need to Know for Thursday (DBB, IXC, QQQQ, SMH, EWZ, FXI, GDX)
U.S. stocks have slipped into neutral territory heading into trading on Thursday, with selling remaining strong in both energy and technology sectors. By contrast, buyers have continued to push financial shares higher to the edge of overbought territory above the 200-day moving average.
Among the markets pulling back into oversold territory above the 200-day are high yield or “junk” corporate bond funds like the ^HYG^ and the ^JNK^.
Here are 7 ETFs You Need to Know for Thursday.
The most oversold ETF in our database heading into Thursday’s trading is the ^DBB^. Shares of DBB have closed lower for three out of the past four trading days, and were down nearly 3% on Wednesday alone.
Energy shares have been among those most under selling pressure this week. Typical of the selling in the group has been the four-day pullback in the ^IXC^.
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Among the major U.S. equity index ETFs, the ^QQQQ^ (below) is the only one that pulled back into oversold territory above the 200-day moving average in trading on Wednesday.
Weakness in the QQQQ has been especially profound due to weakness in underlying semiconductor stocks. Note that the ^SMH^ has closed lower for three out of the past four trading days, and pulled back by nearly 3% on Wednesday.
Among international country funds, the ^EWZ^ (below) is one of the more oversold.
Shares of EWZ closed lower on Wednesday, the fund’s second lower close of the past three days.
On the other end of the spectrum, the ^FXI^ (below) is among the more overbought country funds.
FXI has closed higher for the past two days in a row, the last in overbought territory above the 200-day moving average. FXI has closed higher for five out of the past six trading days as it rallies up above its 200-day.
The ^GDX^, which we noted in yesterday’s 7 ETFs You Need to Know, has closed lower for a third day in a row. The past two closes in GDX have been in oversold territory.
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David Penn is Editor in Chief of TradingMarkets.com