High Probability ETF Trading: 7 ETFs You Need to Know for Wednesday (PFF, SHY, EWJ, XHB, ITB, IWM, XLK)
The major equity index ETFs marched higher on Tuesday, with the ^SPY^ up four days in a row, and the ^QQQQ^ back in overbought territory above the 200-day.
Asian ETFs like the ^FXI^ and the ^EWH^ both up more than 1%. Among the most overbought ETFs heading into trading on Wednesday is the ^EWM^. EWM has closed higher every day but one for the past two weeks.
Here are 7 ETFs You Need to Know for Wednesday.
Most of the exchange-traded funds (ETFs) trading in oversold territory above the 200-day moving average are based either on preferred shares or bonds. Typical of the oversold market going into
trading on Wednesday are the oversold markets in the ^PFF^ and the ^SHY^.
Trading in neutral territory above the 200-day is the most oversold country fund: the ^EWJ^ (below).
Shares of EWJ had closed lower for four out of the past five trading days before moving higher on Tuesday.
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Increasingly overbought below the 200-day going into trading on Wednesday was the ^XHB^ (below).
The XHB has been trading below its 200-day since mid-June.
Also climbing into overbought territory below the 200-day was the ^ITB^.
Up 2% after a one-day pullback into oversold territory above the 200-day moving average, the ^IWM^ (below).
Shares of the IWM have been largely rangebound since the middle of October. IWM had closed lower for four out of the past five trading days before IWM’s Tuesday bounce.
The most overbought ETF in our database is the ^XLK^. The XLK has closed higher for ten consecutive trading days going into trading on Wednesday.
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David Penn is Editor-in-Chief at TradingMarkets.com.