TradingMarkets 7 ETFs You Need to Know for Tuesday
Sellers were aggressive from the opening bell on Monday, sending financial and energy shares reeling. Health care remained under pressure, as short ETFs tracking both stocks and commodities gained.
Here are 7 ETFs You Need to Know for Tuesday.
The Dow Jones Industrial Average fell below 7,000 on Monday. Correspondingly, the Dow Diamonds ETF
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PowerRating) slid below 70 en route to a loss of more than 3% late on the first trading day of the week.
Recently highlighted in our TradingMarkets 5 PowerRatings Stocks for the Next 5 Days column, the ProShares UltraShort Financials ETF
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PowerRating) rallied more than 7% intraday on Monday as oversold conditions above the 200-day moving average reached extreme levels.
After moving higher late in February, the Energy Select Sector SPDRS ETF
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PowerRating) began March on a bearish note, losing 5% intraday on Monday and sliding to levels not seen in years.
Also advancing on Monday was the ProShares Short S&P 500 ETF
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PowerRating) which gained more than 3% to challenge its November 2008 highs. SH seeks to achieve the inverse of the S&P 500 Index, but is unleveraged.
Selling in the the iShares MSCI Emerging Markets Index ETF
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PowerRating) was indicative of the widespread selling in individual country emerging markets ETFs. The EEM fell to new year-to-date lows, but remains above its November 2008 lows.
Health care stocks have been aggressively sold since the President’s budget was unveiled last week. One way for ETF traders to take advantage of falling health care stocks is through short ETFs like the the ProShares UltraShort Health Care ETF
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PowerRating). RXD seeks to return two times the inverse of the Dow Jones U.S. Health Care index.
Also under heavy selling pressure are precious metals ETFs, leading to higher prices for the ProShares UltraShort Silver ETF
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PowerRating). ZSL has closed higher for five consecutive days below the 200-day moving average.
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