TradingMarkets 7 ETFs You Need to Know for Friday
Energies led the markets lower on Thursday as declining oil prices gave traders reason to take profits in the sector. This meant lower levels – and higher ETF PowerRatings – for exchange-traded funds like the SPDR S&P Oil & Exploration & Production ETF
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PowerRating), which lost well over 2% in closing at its lowest level in seven days.
Here are 7 ETFs You Need to Know for Friday.
The losses in energy shares were a boon for the ProShares UltraShort Oil & Gas ETF
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PowerRating), which rallied from oversold below the 200-day moving average to overbought on Thursday. DUG is leveraged two-to-one to the inverse of the daily return of the Dow Jones U.S. Oil & Gas Index.
Up more than 3% from its oversold lows below the 200-day was the ProShares UltraShort Financial ETF
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PowerRating). Inverse leveraged ETFs are popular vehicles for short term traders, as well as investors looking to hedge equity holdings.
Gaining for a third consecutive session is another popular exchange-traded fund that can be used to hedge against risk: the iPath S&P 500 VIX Short Term Futures ETN
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PowerRating) closed higher by more than 3% on Thursday as stock markets began to pullback in earnest.
The iShares MSCI Brazil Index Fund ETF
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PowerRating) is among the most oversold country ETFs as of Thursday’s close, earning an ETF PowerRatings upgrade from 5 to 8.
Our simulated testing of hundreds of exchange-traded funds (ETFs) since 2003 shows that ETFs that have earned our highest ETF PowerRatings have made significant short term gains nearly 80% of the time. Click here to find out more.
Among the major equity index ETFs, the pullback of more than 1% in the iShares Russell 2000 Index ETF
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PowerRating) represented renewed selling of small cap stocks which did not approach new yearly highs – as did the SPDRS S&P 500 ETF
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PowerRating), for example – during the recent bounce.
Lower gold prices helped encourage profit-taking in the extremely overbought Market Vectors Gold Miners ETF
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PowerRating) on Thursday. GDX dropped from an overbought 2-period RSI of more than 99 to oversold levels in a single session, taking the ETF down nearly 3% in the process.