High Probability ETF Trading: 7 ETFs You Need to Know for Thursday EWH, FXI, EWP, GLD, GDX, XLB, RSX
Stocks have begun to sell-off as of midweek, with ETFs based on the S&P 500 catching up with Nasdaq-based ETFs like the ^QQQQ^ en route to lower levels above the 200-day moving average.
The sell-off that began on Wednesday has helped bring out buyers in many of the inverse leveraged ETFs noted in yesterday’s 7 ETFs You Need to Know such as the ^SDS^.
Here are 7 ETFs You Need to Know for Thursday.
Among the country exchange-traded funds that have pulled back into oversold territory above the 200-day moving average ahead of trading on Thursday are Asian country funds like the ^EWH^ and the ^FXI^ (below).
FXI dropped by more than 2% on Wednesday, closing lower for a second session.
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Also pulling back above the 200-day here in the second half of the week is the ^EWP^.
Gold is back in oversold territory as of Wednesday’s close. Two representative funds from this category are the bullion-based ^GLD^ and the mining stock-based ^GDX^ (below).
GDX has closed lower for two days in a row heading into Thursday’s trading. GDX is at its most oversold since the Thanksgiving holiday.
The ^XLB^ (below) has pulled back to near oversold territory above the 200-day.
Wednesday’s lower close was the fund’s second consecutive lower close. Any significant selling in the XLB on Thursday will likely take the fund into oversold territory.
Not yet in oversold territory, the ^RSX^ has closed lower for two out of the past three trading days – and five out of the past seven.
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David Penn is Editor in Chief of TradingMarkets.com