TradingMarkets 7 ETFs You Need to Know for Monday
As the sell-off in U.S. markets intensified into week’s end, the number of exchange-traded funds (ETFs) trading at oversold extremes has soared. More than 120 ETFs have earned top ETF PowerRatings of 9 or 10 as of Friday’s close, including funds like the iShares MSCI Brazil Index Fund ETF
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PowerRating) and the Rydex S&P Equal Weight ETF
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PowerRating).
Here are 7 ETFs You Need to Know for Monday.
Among those ETFs earning our highest ETF PowerRating of 10, the iShares MSCI Taiwan Index Fund ETF
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PowerRating) which pulled back by more than 2% on Friday. EWT has closed in oversold territory above the 200-day moving average for seven out of the past eight trading days.
Also among our highest rated ETFs – with an ETF PowerRating of 9 – is the SPDRS S&P 500 ETF
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PowerRating). The ETF closed off its lows, but remained lower by more than 2% on Friday.
Selling was heavy in energy and basic materials ETFs, with the ProShares UltraShort Basic Materials ETF
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PowerRating) soaring by nearly 7% late in trading on Friday. Trading below its 200-day moving average, SMN has not yet re-entered overbought territory.
Meanwhile, a drop of more than 3% in December crude oil meant lower prices for oil companies like Schlumberger
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PowerRating), both off more than 4%. Correspondingly, the Energy Select Sector SPDRS ETF
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PowerRating) lost more than 3%, while the ProShares Ultra Oil & Gas ETF
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PowerRating) slid well over 6% and back into oversold territory above the 200-day.
Closing lower for the fifth day out of the past six was the ProShares Ultra Financials ETF
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PowerRating). The ETF was down more than 7% on Friday.
The iPath S&P 500 VIX Short Term Futures ETN
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PowerRating) advanced by more than 9% on Friday as aggressive selling pushed equity markets lower. ETFs like VXX are used by both traders and investors as bets on volatility as well as to hedge against downside risk.