High Probability ETF Trading: 7 ETFs You Need to Know for Tuesday (XLU, EWZ, EWP, INP, QQQQ, QID, EWT)
Both the ^SPY^ and the ^IWM^ opened up but closed lower on Monday. The intraday reversal did little to moderate growing overbought conditions above the 200-day moving average in a number of widely-traded funds. Internationally, funds like the ^FXI^ and the ^RSX^ were up more than 1%.
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Here are 7 ETFs You Need to Know for Tuesday.
The most oversold ETF going into trading on Tuesday is the ^XLU^. The XLU has closed lower for three days in a row and is at its most oversold level since mid-September.
Most country-based exchange-traded funds are in neutral territory as of Monday’s close. A few of the more oversold include the ^EWZ^ and the ^EWP^ (below).
The EWP rallied to close above its 200-day moving average back in the second half of September. The current pullback in the exchange-traded fund has taken the EWP to its most oversold levels in a week, when the fund did in fact close in oversold territory.
Also moving toward oversold territory ahead of trading on Tuesday are shares of the ^INP^. INP has been largely range-bound for the past few trading weeks.
One of the most overbought ETFs in our database is also among the most widely-traded.
Closing in overbought territory above the 200-day for a third straight trading day were shares of the ^QQQQ^ (above). The ETF has not closed in oversold territory since October 4th, when a six-day pullback helped lure traders and investors back to the fund.
Accordingly, the ^QID^ (below) is among the most oversold of the more widely-traded leveraged exchange-traded funds.
Soaring by well over 2% on Monday were shares of the ^EWT^. The EWT is the most overbought country fund in our database, and has been trading above its 200-day moving average since early September.
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David Penn is Editor-in-Chief at TradingMarkets.com.