High Probability ETF Trading: 7 ETFs You Need to Know for Wednesday (IWM, UWM, EZU, EWQ, INP, GDX, MOO)
Oversold conditions are widespread in both U.S. equity and international exchange-traded funds (ETFs). Down four days in a row was the ^SPY^, while the ^FXI^ pulled back by nearly 3% on Tuesday alone.
Given all the selling of the past few days, which exchange-traded funds trading above the 200-day moving average have not yet pulled back into oversold territory? Bonds. Bonds. Bonds – such as the moderately oversold ^AGG^ and the more neutral ^SHY^.
Here are 7 ETFs You Need to Know for Wednesday.
The most oversold exchange-traded fund in our database going into trading on Wednesday? The ^EZU^ has closed lower for an eye-popping 8 consecutive trading days.
Down nearly 2% on Tuesday was the ^IWM^ (below).
IWM has closed lower for four days in a row heading into trading on Wednesday, and is more oversold than it has been in more than a month. Equally oversold above the 200-day moving average is the ^UWM^, which is leveraged 2 to 1 to the daily performance of the Russell 2000.
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Among country funds, ETFs representing stocks from both France and India have made some of the biggest pullbacks in the past week. Typical of these pullbacks have been the retreats in the ^EWQ^ and the ^INP^ (below).
Shares of INP have closed lower for seven straight trading days and pulled back by more than 3% on Tuesday.
Closing in oversold territory for a third session were shares of the ^GDX^ (below).
GDX dropped by more than 3% on Tuesday, closing at its most oversold level since mid-October.
The ^MOO^ has closed lower for three days in a row and down well over 2% heading into trading on Wednesday.
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David Penn is Editor-in-Chief at TradingMarkets.com.