TradingMarkets 7 ETFs You Need to Know for Tuesday

• By David Penn
• On 4:15 pm EDT, Monday October 12, 2009

Energies led U.S. markets higher on a Columbus Day trading session characterized by seasonally mild volumes. With earnings from financial companies due soon, exchange-traded funds (ETFs) linked to banks and other financial institutions were on the march higher, as well.

Here are 7 ETFs You Need to Know for Tuesday.

Up by well over 2% on Monday was the ProShares Ultra Oil & Gas ETF (NYSE:DIG - News), which closed higher for a seventh consecutive session above the 200-day moving average. DIG has closed for the past three days in a row with a 2-period RSI above 90 and is extremely overbought.

Meanwhile, rallying to a new 30-day closing high on Monday was the United States Oil Fund (NYSE:USO - News). The surge in USO reflected continued strength in the energy patch with December crude oil futures gaining more than 2% on the day.

Closing for a fifth consecutive day in overbought territory above the 200-day moving average, the ProShares Ultra Financials ETF (NYSE:UYG - News) continues to test its September - and year-to-date - highs.

Among the few ETFs that are oversold above the 200-day moving average as of Monday's close was the iShares Dow Jones U.S. Telecommunciations Index ETF (NYSE:IYZ - News). IYZ has an ETF PowerRating of 7 and is among the highest rated ETFs in our database.

Most country ETFs are trading in neutral teritory above the 200-day moving average. However at the lower end of the range and more oversold than most is the iShares FTSE/Xinhua China 25 Index ETF (NYSE:FXI - News).

Bond ETFs remain among the most oversold by ETF type, such as the iShares Barclays Aggregate Bond Fund ETF (NYSE:AGG - News).

With news that corn and soybeans were advancing due to weather-related issues, the Elements/Rogers International Commodity Index - Agriculture Total Return ETN (NYSE:RJA - News) soared by more than 3% on Monday, closing above its 200-day moving average for the first time since mid-August.

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Buzz up!