Read Larry Connors' blog – Short Term Trading Strategies
| TradingMarkets.com
Pullbacks in country ETFs were widespread on Monday, creating a number of oversold conditions above the 200-day moving average. Sector-wise, energy ETFs remained in retreat while buyers chased consumer staples stocks - and their exchange-traded funds - higher.
Here are 7 ETFs You Need to Know for Tuesday.
Lower energy prices have helped accelerate and deepen the pullback in the Market Vectors Russia ETF (RSX | Quote | Chart | News | PowerRating), which was down more than 3% intra-day on Monday. Also pulling back sharply on the first trading day of the week was the iShares MSCI Brazil Index ETF (EWZ | Quote | Chart | News | PowerRating). Both country ETFs are oversold above their 200-day moving averages.
Among equity index ETFs, those linked to the Nasdaq 100 were increasingly oversold on Monday. The PowerShares QQQ Trust ETF (QQQQ | Quote | Chart | News | PowerRating) was down more than 1%, earning its second consecutive, single-digit 2-period RSI. Rallying into overbought territory below the 200-day moving average was the ProShares UltraShort QQQ ETF (QID | Quote | Chart | News | PowerRating). QID has had a 2-period RSI of more than 90 for two days in a row.
The sell-off in energy shares has created extremely overbought conditions in the ProShares UltraShort Oil & Gas ETF (DUG | Quote | Chart | News | PowerRating), which gained more than 4% intraday on Monday.
Strength in shares of ConAgra Foods (CAG | Quote | Chart | News | PowerRating) and Philip Morris International (PM | Quote | Chart | News | PowerRating) helped send consumer staples ETFs higher on Monday. The Consumer Staples Select Sector SPDR ETF (XLP | Quote | Chart | News | PowerRating) retraced all of its losses from the Thursday sell-off and is now mildly overbought above its 200-day moving average.
Despite being off its recent all-time highs by more than 9%, the Market Vectors Indonesia ETF (IDX | Quote | Chart | News | PowerRating) is still more than double what it traded for at its all-time lows in early March.
ETFs are a fast growing asset class and you need to improve your ETF trading with quantified strategies. High Probability ETF Trading will give you the edge with 7 quantified strategies that have been back tested in model portfolios – click to buy now.
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
