High Probability ETF Trading: 7 ETFs You Need to Know for Thursday (QID, PSQ, IYZ, XLI, GLD, FAZ, ERY)

Increasingly overbought conditions are likely to meet traders when Thursday’s market opens. Up two days in a row after a three-day pullback are shares of the ^SPY^, while the ^QQQQ^ has closed higher for three in a row. Both exchange-traded funds are in overbought territory above the 200-day moving average.

Here are 7 ETFs You Need to Know for Thursday.

Strength in the Nasdaq 100 has resulted in making the ^QID^ and the ^PSQ^ the two most oversold ETFs in our database.

Trading in neutral territory going into Thursday’s trading is the most oversold ETF in our database: the ^IYZ^ (below).

IYZ chart

Shares of the IYZ bounced modestly on Wednesday after closing lower for four trading days in a row.

As overbought as the ^QLD^ has become, the most overbought ETF in our database is the ^XLI^ (below).

XLI chart

XLI has closed higher for four consecutive trading days going into Thursday’s trading. All four closes have been in overbought territory above the 200-day.

Closing in overbought territory above the 200-day for a second session after a five-day pullback on Wednesday were shares of the ^GLD^.

With most sectors back in overbought territory, leveraged exchange-traded funds like the ^FAZ^ (below) and the ^ERY^ have moved closer to oversold territory.

FAZ chart

Down two days in a row, shares of FAZ are only one or two selling days away from their second oversold close of the year.

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 of TradingMarkets.com