Oversold Semiconductors, Overbought India: 7 ETFs You Need to Know for Monday (QQQ, SMH, USD, PIN, EPI, INP, JNK)
Heading into trading on Monday, swing traders will find some of the biggest edges in technology exchange-traded funds (ETFs) in general and semiconductor ETFs in specific. ETFs from this sector have closed lower for three days in a row and are increasingly oversold.
On the other end of the spectrum, country funds representing Indian stocks have become very overbought over the past several days and are due for a short-term pullback. Traders and investors interested in Indian ETFs may find them available at lower prices over the next few days due to their currently extreme overbought status.
Here are 7 ETFs You Need to Know for Monday.
The ^QQQ^ has closed in overbought territory above the 200-day moving average for four days in a row. The QQQ has not closed below its 5-day moving average in two weeks.
Down for two days in a row and more than 1% on Friday is the ^SMH^ (below).
Shares of SMH closed at their lowest level in more than a week and at their most oversold since the oversold lows of mid-March.
Traders looking for leveraged exposure to the semiconductor market should add the ^USD^ (below) to their watchlists.
USD has closed lower for three days in a row and is increasingly oversold.
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Up 10 consecutive trading days, the ^PIN^ is reflective of the overbought nature of India country funds heading into Monday’s trading. Almost equally overbought are the ^EPI^ and the ^INP^ (below).
INP had become overbought below its 200-day moving average and has become only more overbought over the past trading week, closing higher for four out of five sessions.
Junk bond ETFs pulled back sharply ahead of trading on Monday. Down for a second day and closing at its lowest level in two weeks was the ^JNK^.
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David Penn is Editor in Chief of TradingMarkets.com