TradingMarkets 7 ETFs You Need to Know for Thursday
Exchange-traded funds representing financial, technology and energy stocks were in the highest demand on Wednesday. Further upside progress will likely create a number of overbought ETFs trading below their 200-day moving averages over the next few days.
Here are 7 ETFs You Need to Know for Thursday.
Continuing to move higher after pulling back to oversold extremes at the beginning of the week, the Direxion Financial Bull 3x Shares ETF
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PowerRating) gained more than 4% on Wednesday.
Tuesday’s oversold conditions helped encourage buyers to take advantage of low prices for the iShares Dow Jones U.S. Energy Index ETF
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PowerRating) which closed at its highest levels for the week Wednesday afternoon. The ETF is not yet overbought below the 200-day moving average.
Up nearly 3% and tipping into overbought territory below the 200-day moving average, the ProShares Ultra Technology ETF
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PowerRating) continues to provide a vehicle for those betting on higher prices for stocks in the technology sector.
Asian markets also rebounded on Wednesday with the iShares MSCI Taiwan Index ETF
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PowerRating) up more than 3% and the iShares MSCI Japan Index ETF
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PowerRating) gaining more than 2%. Both ETFs are trading below their 200-day moving average, but as of the Wednesday close, only EWT had entered overbought territory below the 200-day moving average.
The rally in basic materials stocks meant lower prices for the ProShares UltraShort Materials ETF
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PowerRating), which lost more than 6% on Wednesday. The SMN had spent the past two days in overbought territory below the 200-day moving average.
The return of buyers to the market encouraged traders to sell shares of the ProShares Short S&P 500 ETF
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PowerRating). SH, which trades above its 200-day moving average, is again oversold above that key level.
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