TradingMarkets 7 ETFs You Need to Know for Tuesday
Financial exchange-traded funds were on the retreat in earnest on Monday, as short and leveraged short ETFs moved sharply higher across the board, though especially those linked to sectors and markets – like the S&P 500 – that have a high number of financial stocks.
Index-linked ETFs plunged, with funds tracking the Nasdaq and the Russell 2000 especially hard hit. Falling oil prices also sent short energy ETFs higher, some by more than 20% by late trading on Monday.
The ProShares UltraShort Financials exchange-traded fund, SKF
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PowerRating), soared by more than 20% on Monday as the Wall Street bailout package failed to pass the House of Representatives.
Down by more than 8%, the PowerShares QQQ Trust ETF, QQQQ
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PowerRating), fell to multi-month closing lows. Also sharply lower was the Select
Technology Sector SPDRS, XLK
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PowerRating), which retreated by more than 7% after two days at overbought extremes.
After two days at oversold extremes, the ProShares UltraShort S&P 500 exchange-traded fund, SDS
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PowerRating), hit a six-day high on Monday, gaining more than 14%.
Also soaring on Monday were the ProShares UltraShort Oil & Gas ETF, DUG
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PowerRating), which added more than 22% on Monday.
Gapping down at the open and continuing lower over the course of the trading day, the iShares FTSE/Xinhua 25 Index ETF, FXI
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PowerRating) lost nearly 14% on Monday as the fund moved toward a test of the September lows.
The Select Gold Trust SPDRS, GLD
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PowerRating), closed at their highest levels since late July, crossing and closing above its 200-day moving average for the second time in the past five days.
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David Penn is Editor in Chief at TradingMarkets.com.