TradingMarkets 7 ETFs You Need to Know for Friday
Oversold extremes led to strong buying on Thursday as markets that had been on the retreat for four or more days in a row were bid dramatically higher. Although few ETFs (exchange-traded funds) have returned all the way back to overbought territory above the 200-day moving aveage, oversold funds – even among bond ETFs – were few and far between.
Here are 7 ETFs You Need to Know for Friday.
Soaring by more than 7% on Thursday, the ProShares Ultra Financials ETF
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PowerRating) closed above its 5-day moving average for the first time in five days. Four days in oversold territory above the 200-day moving average was enough to send the SPDR KBW Bank ETF
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PowerRating) higher by more than 3% on the day.
In pulling back from an intraday gain of more than 2%, small cap based exchange-traded funds (ETFs) like the iShares Russell 2000 Index ETF
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PowerRating) have entered neutral territory between their recent oversold lows and their overbought highs from mid-month.
Among the most oversold of country ETFs was the Market Vectors Russia ETF
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PowerRating), which had a 2-period RSI of less than 2 as of Thursday’s close. RSX bolted higher by more than 8%, retracing 50% of its decline over the past four days.
With money flowing back into stocks, buying pressure in bond ETFs like the iShares Barclays Aggregate Bond Fund ETF
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PowerRating) faded, edging lower but not low enough to enter oversold territory above the 200-day.
Precious metals ETFs were among the big gainers on Thursday. Gold miners outpaced gold bullion as the Market Vectors Gold Miners ETF
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PowerRating) gained more than 4% compared to the advance of just under 2% of the SPDR Gold Shares
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PowerRating), which reflects the price of bullion.