With most markets moving higher on the first day of trading in 2010, short term oversold conditions have turned into short term overbought. Buyers were most aggressive in materials exchange-traded funds like the ^UYM^, which gained more than 6% on Monday.
New highs were the norm among equity index ETFs from the blue chip ^DIA^ to the small cap ^IWM^.
Here are 7 ETFs You Need to Know for Tuesday.
Among the top ETF PowerRatings funds going into trading on Tuesday are the many linked to midcap stocks such as the ^VOE^ and the ^IJH^. Both VOE and IJH earned ETF PowerRatings of 8 late in the trading day on Monday are are among the higher rated ETFs for Tuesday’s trading.
Also earning top ETF PowerRatings for Tuesday is the ^XLU^. XLU has closed lower for four days in a row, its most recent two closes both in oversold territory above the 200-day.
Which are the two most important moving averages for high probability, short term traders? Click here to find out.
A growing number of country exchange-traded funds are increasingly overbought above the 200-day moving average and may be due for a short term reversal. These include ETFs like the ^ILF^, which has closed in overbought territory above the 200-day moving average for seven consecutive trading days.
The most oversold ETF in the market right now? With sellers most aggressive in the real estate sector, exchange-traded funds like the ^VNQ^ and the ^URE^ are among the most oversold going into trading on Tuesday.
Precious metals were also in high demand on Monday, sending shares of the ^GLD^ higher by more than 2% intraday.