Beginning in July, TradingMarkets is bringing back our Most Overbought/Most Oversold ETFs as a weekly column.
Most Overbought/Most Oversold ETFs is based on the strategies in the book, High Probability ETF Trading, by Larry Connors and Cesar Alvarez. High Probability ETF Trading was named one of the top 10 trading books of 2009 by SFO Magazine. Click here to find out why.
Most Overbought/Most Oversold ETF Market Update
The fact that there are no exchange-traded funds among the ranks of the overbought is another reminder of how much fear and anxiety is in the ETF market right now heading into the third quarter of 2010.
Among the most oversold ETF markets – in a universe of very oversold ETFs – is the ETF market for gold, which includes the ^GDX^, one of the most oversold ETF funds in the market right now.
Most Overbought
The following ETFs are the most overbought for Tuesday, July 6, 2010 and are due for a short term reversal. This analysis is based on research published in the book,High Probability ETF Trading.
None
Most Oversold
The following ETFs are the most overbought for Tuesday, July 6, 2010 and are due for a short term reversal. This analysis is based on research published in the book,High Probability ETF Trading.
^ICF^
^GDX^
^TIP^
^UUP^
^SLV^
^INP^
^SHY^
^AGG^
^BND^
^LQD^
David Penn is Editor in Chief at TradingMarkets.com.