Top-rated Semiconductors, Retail as Gold Miners Earn Downgrades: 7 ETFs You Need to Know for Tuesday

Most of the major equity indexes for the United States are trading in neutral territory heading into the holiday-shortened trading week. Outside the United States, signifcant overbought conditions in markets like the ^EWJ^ have traders waiting for pullbacks.

Among sectors, technology and retail have earned some of our highest PowerRatings ahead of Tuesday’s open. And the return of buyers to the precious metals markets has created overbought conditions and PowerRatings downgrades in mining stocks.

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Here are 7 ETFs You Need to Know for Tuesday

Edging higher after five consecutive lower closes, the ^XLU^ (below), has earned our highest PowerRatings for three days in a row.

XLU chart

The ETF remains below its 5-day moving average despite Friday’s modest bounce.

Shares of the ^SMH^ continue to earn top PowerRatings despite being downgraded last week by a point. The ETF is trading just outside of overbought territory and will likely become overbought on any signifcant buying in Tuesday’s session.

The ^KIE^ trimmed its gains ahead of trading on Tuessday, closing fractionally lower in Friday’s session. The fund is set to open Tuesday morning with top PowerRatings, even as it trades in neutral territory above the 200-day moving average.

Our highest rated exchange-traded funds have made significant short term gains more than 77% of the time in our historic testing. Click here to find out more about ETF trading with PowerRatings.

In neutral territory above the 200-day moving average, the ^RTH^ continue to be among the higher rated sector funds in our database.

RTH chart

Among the holdings in the RTH are such retail stocks as ^WMT^, ^HD^ and ^AMZN^.

Recent strength in precious metals mining stocks has led to significant downgrades in both the ^GDX^ and the ^GDXJ^ (below).

GDXJ chart

Closing deeper into overbought territory after a gain of more than 2% on Friday, GDXJ earned a one-point PowerRatings downgrade ahead of Tuesday’s open.

Also earning a one-point PowerRatings downgrade heading into trading on Tuesday was the ^EWZ^.

ETF PowerRatings are a great way to start trading exchange-traded funds (ETFs). For more information on trading ETFs using PowerRatings, click here.

David Penn is Editor in Chief of