TradingMarkets 7 ETFs You Need to Know for Wednesday

Stocks drifted lower for most of the day on Tuesday, as early leadership from technology stocks was not enough to support an overbought market. Plus: a new way for stock and ETF traders to trade the trends, breakouts and pullbacks in foreign currencies!

Here are 7 ETFs You Need to Know for Wednesday.

Transportation stocks were in the spotlight on Tuesday as FedEx Corporation
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and a number of shipping companies warned of softer profits in 2009. Among the most widely traded transportation ETFs is the iShares Dow Jones Transportation Average Fund, IYT
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, which counts United Parcel Service
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among its holdings, as well.

The news that pending home sales were not as bad as feared likely means more trading activity in the SPDR Homebuilders ETF, XHB
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which has been pulling back after rallying to new short term highs late last week.

Before turning lower later in the session, technology stocks had been among the early leaders on Tuesday. Some of the most widely traded technology stocks – from Cisco Systems
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and Apple
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to Microsoft
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and Intel
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are represented in ETFs such as the SPDR Technology Select Sector ETF, XLK
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and in the ProShares Ultra Technology ETF, ROM
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, which is leveraged 2 to 1 to the Dow Jones U.S. Technology Index.

Interested in trading moves in foreign currencies without opening up a forex account? CurrencyShares Euro Trust, FXE
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and Currency Shares Japanese Yen Trust, FXY
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let traders of stocks and exchange-traded funds get exposure to the world of international currencies.

Although ending the day off its highs, the Nasdaq outperformed both the Dow industrials and S&P 500 Index on Tuesday. The most widely traded ETF representing the Nasdaq is the PowerShares QQQ Trust, QQQQ
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, which represents the Nasdaq 100.

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