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With selling most intense in the financial sector and among technical shares, buying in consumer staples and health care helped keep the markets trading near breakeven levels.
Here are 7 ETFs You Need to Know for Wednesday.
Sellers were especially aggressive in the financial sector, with shares of stocks like U.S. Bancorp (USB | Quote | Chart | News | PowerRating) and American Express (AXP | Quote | Chart | News | PowerRating) leading financial ETFs lower. Pulling back on Tuesday was the Financial Select Sector SPDR ETF (XLF | Quote | Chart | News | PowerRating), which had spent the past two days in overbought territory below the 200-day moving average.
Consumer staples stocks remain in high demand, with the Consumer Staples Select Sector SPDR ETF (XLP | Quote | Chart | News | PowerRating) closing higher for a fourth consecutive trading day in a row.
Confidence continues to improve among home builders as a jump in home resales helped send the SPDR Homebuilder ETF (XHB | Quote | Chart | News | PowerRating) higher on Tuesday. The ETF has closed for a second consecutive session below the 200-day moving average.
Massive money flows of $12 billion have helped make emerging markets among the most overvalued stock funds according to EPFR Global, which tracks international investment. ETF traders and investors have made the iShares MSCI Emerging Markets ETF (EEM | Quote | Chart | News | PowerRating) among the most sought after ETFs for getting exposure to developing countries like Brazil, China and Russia.
Crossing above its 200-day moving average for the first time since September 2008 was the Vanguard Health Care ETF (VHT | Quote | Chart | News | PowerRating). VHT includes stocks like Johnson & Johnson (JNJ | Quote | Chart | News | PowerRating) and Pfizer (PFE | Quote | Chart | News | PowerRating) among its holdings.
Both the euro and the British pound continue to gain against the U.S. dollar, as greenback pessimism reaches new extremes. ETF traders and investors can get exposure to the currency markets through ETFs like the CurrencyShares Euro Trust (FXE | Quote | Chart | News | PowerRating) and the CurrencyShares Japanese Yen Trust (FXY | 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.
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