TradingMarkets 7 ETFs You Need to Know for Thursday
The financial and materials sectors provided leadership to the upside on Wednesday, helping the major equity indexes climb even higher into overbought territory above the 200-day moving average. Precious metals ETFs such as the SPDR Gold Trust ETF
(
GLD |
Quote |
Chart |
News |
PowerRating) outperformed oil ETFs like the United States Oil Fund ETF
(
USO |
Quote |
Chart |
News |
PowerRating).
Here are 7 ETFs You Need to Know for Thursday.
Up more than 2% late in trading on Wednesday was the ProShares Ultra Financials ETF
(
UYG |
Quote |
Chart |
News |
PowerRating), indicative of the continued strength in the sector. UYG has closed in overbought territory above the 200-day for a third consecutive trading session.
Joining gold and health care ETFs among those that are at overbought extremes above the 200-day and overdue for pullbacks are ETF linked to the Nasdaq 100. This includes not only the PowerShares QQQ Trust ETF
(
QQQQ |
Quote |
Chart |
News |
PowerRating) – which has had a 2-period RSI of more than 90 for five consecutive days – but also the ProShares Ultra QQQ ETF
(
QLD |
Quote |
Chart |
News |
PowerRating). QLD is leveraged two-to-one to the daily return of the Nasdaq 100 Index.
Soaring to its highest closing levels in more than 12 days was the SPDR Homebuilders ETF
(
XHB |
Quote |
Chart |
News |
PowerRating), which gained nearly 3% on Wednesday.
Click here to learn how to trade ETFs using moving averages.
The few ETFs that are moving toward oversold territory in recent days tend to be oil-related, such as the SPDR S&P Oil & Gas Exploration & Production ETF
(
XOP |
Quote |
Chart |
News |
PowerRating). XOP still remains above its 5-day moving average, as it has for the past six trading days.
The most oversold country ETF trading above the 200-day? Take a look at the iShares MSCI United Kingdom Index Fund ETF
(
EWU |
Quote |
Chart |
News |
PowerRating), which pulled back by 1% on Thursday two days after gapping higher by 3%.
With the VIX stretching more than 10% below its 10-day moving average, buyers expressed interest in the iPath S&P 500 VIX Short Term Futures ETN
(
VXX |
Quote |
Chart |
News |
PowerRating), which closed higher for a second day in a row after falling precipitously for three out of the previous four.