TradingMarkets 7 ETFs You Need to Know for Monday
Renewed declines in the price of crude oil encouraged selling in energy-related stocks and exchange-traded funds on Friday. Traders were also seeking the
protection of fixed income in the wake of the negative Friday jobs report and spike in unemployment by moving into bond ETFs.
Here are 7 ETFs You Need to Know for Monday.
Energy stocks led the markets lower on the final trading day of the week, with shares of Haliburton
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HAL |
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PowerRating) and Nabors Industries
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NBR |
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PowerRating) among those stocks experiencing the heaviest selling. This meant lower prices for Energy Select Sector SPDRS, XLE
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PowerRating).
With the shining exception of Apollo Group Inc.
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APOL |
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PowerRating), consumer discretionary stocks pulled back on Friday, as well. Profit-taking in Sears Holdings
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PowerRating) and panic selling in Coach Inc.
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PowerRating) characterized trading in the sector, which can be traded using the Consumer Discretionary Select Sector SPDRS, XLP
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XLY |
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PowerRating).
Traders and investors can hedge portfolios of consumer discretionary stocks with ETFs like the ProShares UltraShort Consumer Services ETF, SCC
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PowerRating), which has advanced for four out of the past five trading sessions.
Up for a fourth day in a row were the Rydex CurrencyShares Japanese Yen Trust ETF, FXY
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PowerRating), which are increasingly overbought above the 200-day moving average.
The poor jobs report on Friday helped reignite the rally in bonds. The iShares iBoxx Investment Grade Corporate Bond ETF, LQD
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LQD |
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PowerRating) broke out to new highs intraday on Friday while the iShares Lehman TIPS Bond, TIP
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TIP |
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PowerRating), rallied for the third out of the past four trading days.
Breaking out to new highs for the month was the ProShares UltraShort S&P 500 ETF, SDS
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SDS |
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PowerRating), which closed above its 10-day moving average for the first time since late December.
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David Penn is Editor in Chief at TradingMarkets.com.