Oversold extremes again led to massive buying across all sectors on Tuesday, leaving only the bond exchange-traded funds among those most oversold ahead of trading on Wednesday. A number of country funds, such as the iShares MSCI Taiwan Index Fund (EWT), that had earned top ETF PowerRatings going into Tuesday's trading made significant gains on the day.
From a sector perspective, buyers were most aggressive in Materials and and Energies. Up more than 4% and crossing back above the 200-day moving average on Tuesday was the ProShares Ultra Oil & Gas (DIG), while the ProShares Ultra Basic Materials (UYM) soared by more than 6%.
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Here are 7 ETFs You Need to Know for Wednesday.
Among the exchange-traded funds (ETFs) taking their top ETF PowerRatings into trading on Wednesday are the iShares MSCI Turkey Investable Market Index Fund (TUR) and the iShares MSCI Chile Inv Mkt Idx (ECH). Both of these country ETFs earned ETF PowerRatings of 9 late in the trading day on Tuesday.
A variety of equity index ETFs rallied to close above their 5-day moving averages after closing below that level for the past three days. Included in this group is the SPDR S&P 500 ETF (SPY) and the DIAMONDS Trust (DIA).
Top rated ETFs making big gains on Tuesday included the iShares MSCI South Korea Index Fund (EWY). The EWY began the day with an ETF PowerRating of 10 and gained well over 2% in trading on Tuesday.
ETFs like ProShares UltraShort S&P 500 (SDS) that had become increasingly overbought below the 200-day moving average sold off for the second day out of the past three.
The most oversold ETF in our database? After Tuesday's powerful rally, bond ETFs like the iShares Barclays TIPS Bond Fund (TIP) are among the funds high probability traders looking for potential trading opportunities may need to focus on for the next few days.
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