High Probability ETF Trading: 7 ETFs You Need to Know for Wednesday (EWC, EWA, EEM, VWO, UDN, GDX, DGP)
Tuesday’s sell-off means that traders will be welcoming oversold conditions when trading begins Wednesday morning. In addition to the Asian country exchange-traded funds that have been pulling back (many of which were noted in yesterday’s 7 ETFs You Need to Know), countries like Canada and Australia have also seen their major tracking ETFs pullback into oversold territory in the wake of Tuesday’s selling.
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Here are 7 ETFs You Need to Know for Wednesday.
Closing in oversold territory above the 200-day moving average ahead of trading on Wednesday were shares of the ^EWC^ and the ^EWA^ (below).
Shares of EWA have closed lower for three days in a row, with only the most recent close in oversold territory. The stock’s close was its lowest in more than a week.
Emerging markets ETFs also remain under selling pressure. Traders can keep track of these markets through exchange-traded funds like the ^EEM^ which has closed lower for three out of the past four trading days, and the ^VWO^ (below) which is down three straight.
VWO is among the most oversold ETFs in our database, especially among country funds. The ETF is at its most oversold since the second half of August.
Buying in the U.S. dollar helped the ^UDN^ pullback by more than 1% on Tuesday. The fund had only recently been testing year-to-date highs.
Strength in greenbacks meant weakness for commodities, as well. Down for a fourth consecutive trading day and pulling back by more than 4% on Tuesday was the ^GDX^ (below).
Shares of GDX are more oversold now than they have been at any point since mid-July when the ETF was moving back and forth around the 200-day moving average.
Also pulling back into oversold territory ahead of trading on Wednesday were shares of the ^DGP^. DGP fell by more than 5% on Tuesday, closing at its lowest level in ten days.
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 at TradingMarkets.com.