A broad-based rally to begin the week included improving fortunes for energy, basic materials and financial stocks. Short and inverse ETFs pulled back dramatically into oversold territory.
Here are 7 ETFs You Need to Know for Tuesday.
Among the first short/inverse exchange-traded funds to become oversold last week became all the more so on Monday. The ProShares UltraShort Consumer Services ETF, SCC ( SCC | Quote | Chart | News | PowerRating) closed lower for a fifth day in a row.
President elect Barack Obama's commitment to massive infrastructure spending has encouraged traders and investors to pile into basic materials stocks, boosting funds like the SPDR Basic Materials Select Sector ETF, XLB ( XLB | Quote | Chart | News | PowerRating) on Monday. Conversely, the ProShares UltraShort Basic Materials ETF, SMN ( SMN | Quote | Chart | News | PowerRating) plunged by more than 19% into deeply oversold levels late in the day.
Up for a fifth consecutive session were the ProShares Ultra Financials ETF, UYG ( UYG | Quote | Chart | News | PowerRating), which were among our 7 ETFs on Friday. The fund has not have five consecutive positive trading days in more than a year.
Down four out of the past five days was the ProShares Short QQQ ETF, PSQ ( PSQ | Quote | Chart | News | PowerRating), reflecting renewed strength in the technology sector, particularly among big cap stocks. The iShares Dow Jones U.S. Technology Index ETF, IYW ( IYW | Quote | Chart | News | PowerRating), which includes Microsoft ( MSFT | Quote | Chart | News | PowerRating), Hewlett-Packard ( HPQ | Quote | Chart | News | PowerRating), and Apple ( AAPL | Quote | Chart | News | PowerRating), was up nearly 6% within the final hour of trading on Monday.
The breadth of the rally on Monday was reflected in European stock markets, as well, the iShares Germany Index ETF, EWG ( EWG | Quote | Chart | News | PowerRating), which was among a number of European-based ETFs that broke out to new 7-day closing highs on Monday.
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