High Probability ETF Trading Report: Opportunities in Oversold Asia
With Intel beating analyst estimates, markets are set to extend their overbought conditions again today on Wednesday – at least in early trading.
As Larry Connors noted this morning in the Morning Market Intelligence portion of his Daily Battle Plan, while U.S. markets have been persistently overbought above the 200-day moving average, a number of other markets have been pulling back and may represent opportunities for high probability trades in the near future.
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Among these potential opportunities are a handful of country exchange-traded funds. These include the ^EWY^, which has closed in oversold territory above the 200-day moving average for the past two trading days.
Based on at least two of the strategies in our High Probability ETF Trading Software, the EWY should likely be among the funds that high probability traders keep an eye on in the near term.
Gapping down on the open on Tuesday was enough to push another Asian country fund, the ^EWM^ into oversold territory, as well.
EWM had been trading in a six-day trading range before breaking down on Tuesday. The move lower had EWM closing at its lowest levels since the first day of the month.
The last exchange-traded fund that high probability traders might want to put on their watchlists is another country fund: the ^THD^.
THD has closed in oversold territory for three out of the past four trading days (the one day THD wasn’t in oversold territory over the last four, the fund had a low 2-period RSI of less than 33). THD is now trading at its lowest levels since late March.
Outside of these potential opportunities in country ETFs, some of the other areas that our High Probability ETF Trading Software has been highlighting over the past few days include bets against overbought bond ETFs like the ^IEF^ and the ^TLT^.
With Larry Connors’ High Probability ETF Trading Software, short term traders have access to the same kind of “buy the selling, sell the buying” trading strategies that professional traders have used successfully for decades.
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David Penn is Editor in Chief at TradingMarkets.com.