High Probability ETF Trading: 7 ETFs You Need to Know for Tuesday (PPH, XLP, EWT, EWJ, EZA, GDX, IEZ)

ETF markets in general are following through to the upside following Friday’s big sell-off. Asian country funds, which had been among the more oversold markets coming into trading on Tuesday, are among some of the big early gainers in the first hour of trading.

Buyers are also moving aggressively back into materials funds, with the ^UYM^ up more than 3% as Tuesday’s trading begins.

Here are 7 ETFs You Need to Know for Tuesday.

Two of the most oversold ETFs in our database coming into trading on Tuesday are two funds from typically “safe” investment sectors: the ^PPH^ and the ^XLP^ (below).

XLP chart

Shares of XLP had pulled back for four consecutive trading days, the last three in oversold territory above the 200-day. The fund was up early in trading on Tuesday.

Among oversold country funds, ETFs representing Asian markets are well-represented. The ^EWT^ (below) are up more than 1% intraday on Tuesday after closing in oversold territory above the 200-day moving average for the past two trading days. Also bounding higher early in trading on Tuesday are the ^EWJ^.

EWT chart

EWT was last oversold less than two weeks ago. Two oversold closes then helped prompt a rally that sent the ETF higher for the next four trading days.

Continuing to trade just outside of oversold territory above the 200-day moving average is the ^EZA^. The fund is modestly higher early on Tuesday.

Up well over 1% early in trading on Tuesday, the ^GDX^ continues to trade near its 200-day moving average, having slipped below that level at the end of January.

The most overbought ETF in our database, the ^IEZ^ (below) is only more overbought as trading begins on Tuesday.

IEZ chart

IEZ has closed in overbought territory with a 2-period RSI of more than 90 for the past four trading days and is up again as Tuesday’s trading begins.

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