TradingMarkets 7 ETFs You Need to Know for Tuesday
Profit-taking accelerated on the first trading day of the week, with financial and energy ETFs both facing heavy selling. Pullbacks among emerging markets ETFs, which had become extremely overbought late last week, were among the most pronounced, with some ETFs losing more than 5% on Monday.
Here are 7 ETFs You Need to Know for Tuesday.
The sell-off in financial shares helped send the ProShares UltraShort Financials ETF
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PowerRating) soaring by more than 14% intraday. Having trended below the 200-day moving average near mid-month, SKF is now overbought below that level as of Monday’s close.
Closing lower for a fifth trading session in a row and down more than 4% intraday was the Energy Select Sector SPDRS ETF
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PowerRating). Monday’s close marked the ETF’s lowest close in the past nine days.
The dramatic drop in oil prices, noted by the United States Oil Fund ETF
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PowerRating), which was down more than 6% on Monday, was largely blamed for the selling in oil stocks.
Technology stocks were not spared from the profit-taking, as both Cisco Systems
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PowerRating) and Hewlett Packard
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PowerRating) led tech ETFs like the Technology Select Sector SPDRS
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PowerRating) lower on the day. Down more than 3% on Monday, XLK closed lower for a second consecutive session after reaching overbought extremes below the 200-day moving average late last week.
The selling in technology shares meant lower levels for Nasdaq-based ETFs such as the ProShares Ultra QQQ ETF
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PowerRating), which provides traders with leveraged, two-to-one exposure to the daily returns of the Nasdaq 100.
Among the better performing ETFs heading into Monday’s trading, the iShares Dow Jones U.S. Home Construction ETF
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PowerRating) slid by more than 6% in trading on Monday.
Although trading off their lows for the day on Monday, the PowerShares DB Agriculture Index ETF
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PowerRating) remained under pressure, closing at 12-day lows below the 200-day moving average.
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