Falling prices for crude oil presented tremendous opportunities in the leading leveraged ultrashort ETF for oil & gas stocks on Monday as the sector trading theme shifts from bullish to bearish in the oil patch. Financials were quiet by comparison, gold continued to pull back, and emerging markets including Brazil showed renewed weakness below the 200-day moving average.
Here are 7 ETFs You Need to Know for Tuesday
The ProShares UltraShort Oil & Gas exchange-traded fund, DUG ( DUG | Quote | Chart | News | PowerRating), soared by nearly 9% on Monday. In closing above its 200-day moving average for the third time in eight days, DUG has climbed to levels not seen since early April.
The Select Energy SPDRs, XLE ( XLE | Quote | Chart | News | PowerRating), plunged more than 4% on Monday, breaking down to levels not seen since March 2008. XLE has been trading below the 200-day moving average since mid-July.
ProShares UltraShort Financials exchange-traded fund, SKF ( SKF | Quote | Chart | News | PowerRating), continued to pull back to its 200-day moving average at approximately $112. SKF has been moving largely sideways since reaching an oversold extreme early in the second half of July when the ETF first tested its 200-day moving average.
iShares MSCI Emerging Markets Index, EEM ( EEM | Quote | Chart | News | PowerRating), lost more than 2%, but fell short of the July lows. Currently oversold with a 2-period RSI of less than 9, EEM has been trading below its 200-day moving average since early June. Among emerging markets, the iShares Brazil Index Fund, EWZ ( EWZ | Quote | Chart | News | PowerRating) was also lower on Monday, falling to levels not seen since the spring. EWZ has traded below the 200-day moving average since early July.
The SPDR Gold Trust ETF, GLD ( GLD | Quote | Chart | News | PowerRating), continues to pull back from its mid-month highs north of $97 and is now within a point of its rising 200-day moving average. With regard to other commodities-related ETFs, the PowerShares DB Agricultural Index, DBA ( DBA | Quote | Chart | News | PowerRating), slipped back below its 200-day moving average and fell to test year-to-date lows on Monday.
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