TradingMarkets 7 ETFs You Need to Know for Wednesday

  • June 23, 2009
  • David Penn

Financial and energy ETFs were among those making the most out of Tuesday’s otherwise mild reaction to Monday’s sell-off. With the exception of India, most country funds remained under selling pressure.

Here are 7 ETFs You Need to Know About for Wednesday.

The ProShares UltraShort S&P 500 ETF
(
SDS |
Quote |
Chart |
News |
PowerRating) spent a second day in overbought territory below the 200-day moving average on Tuesday, as the S&P 500 remained under selling pressure. The S&P 500 SPDR ETF
(
SPY |
Quote |
Chart |
News |
PowerRating) edged higher but remains oversold.

For tips on high probability strategies for trading ETFs like the SPY, click here to read Part 1 of our series: “How to Exit an ETF Trade”.

Among ETFs representing the so-called BRIC nations of Brazil, Russia, India and China, the iShares FTSE/Xinhua China 25 Index ETF
(
FXI |
Quote |
Chart |
News |
PowerRating) spent a second day in oversold territory above the 200-day moving average on Tuesday. Conversely, the India Fund
(
IFN |
Quote |
Chart |
News |
PowerRating) was up more than 2% , rallying from mildly oversold conditions above the 200-day.

Financial ETFs bounced after Monday’s dramatic sell-off. The Direxion Financial Bull 3x Shares ETF
(
FAS |
Quote |
Chart |
News |
PowerRating) gained more than 3% intraday before selling off late.

Also moving higher were exchange-traded funds representing the basic materials and energy sectors. The Materials Select Sector SPDR ETF
(
XLB |
Quote |
Chart |
News |
PowerRating), which had spent the past two days in oversold territory above the 200-day, gained well over 1% on Tuesday. One day in oversold territory above the 200-day moving average was enough for a more than 2% bounce in the Market Vectors Coal ETF
(
KOL |
Quote |
Chart |
News |
PowerRating).

Did you know that FAS (Direxion Financial Bull 3X Shares) recently surpassed the volume of trading as compared to the SPYs (SPDR S&P 500)? Click here to learn quantified trading strategies in High Probability ETF Trading and gain a trading edge.