TradingMarkets 7 ETFs You Need to Know for Monday

Sellers remained persistent in profit-taking where health care and energy ETFs were concerned. This will likely lead to oversold conditions in the group over the next few days.

Here are 7 ETFs You Need to Know for Monday.

Oversold energy ETFs became only more oversold on Friday. Among those trading above their 200-day moving averages on Friday were the Energy Select Sector SPDR ETF
(
XLE |
Quote |
Chart |
News |
PowerRating)
and the iShares Dow Jones U.S. Oil & Gas Exploration Index ETF
(
IEO |
Quote |
Chart |
News |
PowerRating)
, both down for a fifth consecutive trading day.

Health care stocks continued to rally in the face of diminishing prospects for significant health care reform in the near term. Moving into overbought territory above the 200-day moving average and increasingly due for a pullback are health care ETFs like the Rydex SP Equal Weight Health Care ETF
(
RYH |
Quote |
Chart |
News |
PowerRating)
.

Mexico lowered its key interest rate to 4.75% in an effort to stimulate its economy. The iShares MSCI Mexico Investable Markets Index ETF
(
EWW |
Quote |
Chart |
News |
PowerRating)
moved higher for a third consecutive day on Friday, bouncing from oversold conditions above the 200-day earlier in the week.

A powerful response from oversold conditions above the 200-day moving average could be seen in the iShares MSCI Spain Index ETF
(
EWP |
Quote |
Chart |
News |
PowerRating)
which gained more than 2% intraday on Friday to close above its 5-day moving average. Also moving dramatically higher among European country ETFs was the iShares MSCI France Index ETF
(
EWQ |
Quote |
Chart |
News |
PowerRating)
, up more than 1% intraday.

The Utilities Select Sector SPDR ETF
(
XLU |
Quote |
Chart |
News |
PowerRating)
failed for a second time in the past several days to remain above its 200-day moving average after breaking out above that level.

ETFs are a fast growing asset class and you need to improve your ETF trading with quantified strategies. High Probability ETF Trading will give you the edge with 7 quantified strategies that have been back tested in model portfolios — click to buy now.