Omens of an Oil Reversal Bring Out the Sellers in Energy Funds: 7 ETFs You Need to Know for Tuesday
Profit-taking in crude oil sent exchange-traded funds like the ^USO^ and the ^OIL^ down by more than 3% ahead of trading on Tuesday.
In addition to the pullbacks in energy funds, swing traders may want to keep an eye on financial funds with both ^JPM^ and ^BAC^ reporting earnings this week.
Here are 7 ETFs You Need to Know for Tuesday.
The ^SPY^ has closed lower for the past three trading days – the last two in oversold territory above the 200-day. Monday’s close in the SPY was the ETF’s lowest since late March.
Given the Monday’s reversal in crude oil, it is a little ironic that the most oversold fund in our database is not the ^XOP^ (which came in second). The most oversold ETF heading into Tuesday session is the ^PBW^ (below).
Shares of PBW have closed lower for four consecutive sessions, finishing in oversold territory on all four trading days.
Small and midcap stocks have been among those most aggressively targeted by sellers in recent days. The ^IJH^ have closed lower for three days in a row – all three in oversold territory. Pulling back for four days in a row and very oversold above the 200-day moving average is the ^VBK^.
VBK, like IJH, has closed in oversold territory for the past three consecutive trading sessions.
Shares of the ^DIG^ (below) closed lower by well over 3% ahead of trading on Tuesday.
DIG closed at its lowest level of the month, and is again oversold above the 200-day moving average.
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Wondering where the buyers are? Take a look at the market for the ^EWA^. EWA has closed lower than its open for the past three trading days. At the same time the fund is extremely overbought, having closed in overbought territory for 17 consecutive trading days.
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David Penn is Editor in Chief of TradingMarkets.com