Sellers Send Silver, Precious Metals Funds Lower Ahead of Bernanke QE2 Update: 7 ETFs You Need to Know for Wednesday
Yesterday we noted how precious metals ETFs had remained resilient in the face of selling among the miners. On Tuesday, the sellers caught up with the bullion funds, sending a number of ETFs linked to both silver and gold tumbling ahead of Wednesday’s session.
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Here are 7 ETFs You Need to Know for Wednesday.
Precious metals exchange-traded funds have been in the spotlight for the first half of the week. Strong selling in bullion funds has helped ETFs like the ^SLV^ (below) retreat into oversold territory while a number of like funds, including the ^GLD^ and the ^IAU^ have pulled back to levels that are just outside of oversold territory above the 200-day moving average.
The SLV closed with a 2-period RSI of more than 90 for seven consecutive trading days leading into Tuesday’s big sell-off. SLV ended the day down nearly 4%.
While sellers have been active in precious metals, buyers have remained on the offensive when it comes to real estate related markets like the ^ICF^ and the ^VNQ^ (below).
Shares of VNQ have closed higher for five days in a row – all five in overbought territory above the 200-day moving average.
Up four out of the past five trading days since its last oversold low, the ^XLF^ continues to underperform other sector funds like the XLK and the XLE representing technology and energy stocks, respectively.
Breaking out above a short term trading range and gaining nearly 1% ahead of trading on Wednesday was the ^TLT^ (below).
With the Fed Chairman’s press conference today on Wednesday highly anticipated by stock and bond traders alike, keeping an eye on the TLT over the next few days may be worthwhile for traders anticipating a pickup in volatility in otherwise slow-moving bond ETFs.
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David Penn is Editor in Chief of TradingMarkets.com