High Probability ETF Trading: 7 ETFs You Need to Know for Thursday (PPH, XLV, GLD, EWP, XLF, IWM, UUP)
Overbought conditions increasingly characterize the ETF markets both in the United States and abroad. ^EWM^, no other country funds are in oversold territory and, with the exception of a few health care related ETF markets, most sector funds are trading outside of oversold territory, as well.
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Here are 7 ETFs You Need to Know for Thursday.
Among the few exchange-traded funds still in oversold territory above the 200-day moving average are a pair of health-care related ETFs: the ^PPH^ and the ^XLV^ (below).
Shares of XLV have been mostly rangebound since late in the first half of January.
Buyers began to re-enter the market for gold and gold-related funds on Wednesday. This helped the ^GLD^ rally to close above its 5-day moving average after a four-day pullback into oversold territory.
Pulling back above the 200-day ahead of trading on Thursday is the ^EWP^ (below).
EWP has closed lower for the past two trading days and is trading just outside of oversold territory.
Also trading just outside of oversold territory above the 200-day is the ^XLF^. Although largely rangebound over the past few days, the XLF has still closed lower for three days in a row heading into Thursday’s open.
Up more than 1% on Wednesday and closing higher for a third day in a row was the ^IWM^ (below).
The three-day rally in the IWM comes after the fund pulled back into deeply oversold territory during a previous three-day retreat.
The ^UUP^ continues to trend lower and deeper into oversold territory. The fund has closed lower for four consecutive trading days – eight out of the past nine.
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David Penn is Editor in Chief of TradingMarkets.com