Going into the second half of the holiday-shortened week, traders will find an abundance of exchange-traded funds (ETFs) that have pulled back into oversold territory above the 200-day moving average. These ETFs range from equity index funds like the ^OEF^ to country funds like the ^EWZ^ and even sector ETFs like the ^XLV^.
Here are 7 ETFs You Need to Know for Wednesday.
In a world of oversold ETFs, the^EWP^ is king, earning the top spot as the most oversold ETF trading above its 200-day moving average in our database.
Not far behind EWP is the ^EWA^ (below).
Shares of EWA pulled back by more than 3% on Tuesday, closing back in oversold territory above the 200-day.
If you like trading ETFs, then you’ll love The Machine Lite. Click here now to save your spot at the upcoming free webinar this Wednesday led by TradingMarkets founder and CEO Larry Connors on How to Harness the Power of The Machine Using The Machine Lite.
In addition to the iShares S&P 100 Index Fund ETF noted above, other more familiar equity index ETFs – from the ^IWM^ to the ^QQQQ^ (below) have also retreated to oversold territory above the 200-day moving average.
Tuesday’s sell-off, which took the QQQQ down more than 1%, was the stock’s first selling day after closing higher for four days in a row.
Emerging markets, the unheralded beneficiaries of QE2, have also begun to pullback over the past few days. Closing lower by more than 3% were both the ^VWO^ and the ^EEM^.
Despite widespread selling, traders and investors continue to pile into retail stocks, making the ^XRT^ (below) the most overbought exchange-traded fund in our database.
Closing higher for five trading days in a row, shares of XRT have also closed in overbought territory for five days in a row. Tuesday’s close marked another year-to-date high in the fund.
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