High Probability ETF Trading: 7 ETFs You Need to Know for Thursday (IXC, OIH, QQQQ, VWO, EEM, ILF, EWZ)
Pullbacks in emerging markets ETFs remain widespread and deep, with a number of funds actually dropping below their 200-day moving averages ahead of Thursday’s open. Also moving aggressively lower and into oversold territory are a wide number of energy and oil-related exchange-traded funds, which have begun to catch up with pullbacks in the underlying commodity.
Here are 7 ETFs You Need to Know for Thursday.
Energy equity funds have joined their commodity-based counterparts in pulling back above the 200-day moving average here in the second half of the week. Closing in oversold territory ahead of trading on Thursday are the ^IXC^ and the ^OIH^ (below).
Shares of OIH have closed lower for two days in a row, with both closes in oversold territory above the 200-day.
Despite pulling back on Wednesday, the ^QQQQ^ remains just inside of overbought territory.
Emerging markets are a current source of weakness in the market that could become attractive to high probability traders over the next few days. Examples of some of these emerging markets exchange-traded funds are the ^VWO^^ and the ^EEM^ (below).
EEM pulled back by more than 2% in trading on Wednesday to close oversold above the 200-day.
Down three out of the past four trading days is the ^ILF^ (below).
The ETF dropped by more than 2% in trading on Wednesday.
The selling in international funds has sent a number of major ETFs below their 200-day moving averages going into trading on Thursday. This includes the ^EWZ^, which pulled back to close below its 200-day on Wednesday.
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David Penn is Editor in Chief of TradingMarkets.com