TradingMarkets 7 ETFs You Need to Know for Friday

• By David Penn
• On 4:31 pm EDT, Thursday October 8, 2009

Exchange-traded funds (ETFs) linked to the energy sector were among the outperformers on Thursday, with the ProShares Ultra Oil & Gas ETF (NYSE:DIG - News) gaining well over 4% on the day. Overbought conditions above the 200-day continue to prevail for the vast majority of regular ETFs.

Here are 7 ETFs You Need to Know for Friday

The SDPR S&P 500 ETF (NYSE:SPY - News) closed higher on Thursday for the fifth consecutive trading day, its third in a row in overbought territory above the 200-day.

Meanwhile, off more than 3% intraday and closing at its lowest levels in more than a year was the ProShares UltraShort S&P 500 ETF (NYSE:SDS - News). The ETF, which is leveraged two-to-one to the

Positive retail sales helped boost ETFs based on the sector such as the Retail HOLDRS ETF (NYSE:RTH - News) and the SPDR S&P Retail ETF (NYSE:XRT - News).

Surprisingly strong third quarter profits from Alcoa (NYSE:AA - News) were accompanied by a jump of more than 5% in the PowerShares DB Base Metals Fund (NYSE:DBB - News). DBB is designed to reflect the prices of industrial metals including copper, aluminum and zinc.

With most regular, non-inverse ETFs wildly overbought above the 200-day moving average as of Thursday's close, bond ETFs like the Vanguard Total Bond Market ETF (NYSE:BND - News) were among the few funds trading in oversold territory above the 200-day.

A surprise rate increase by the Reserve Bank of Australia helped send the CurrencyShares Australian Dollar Trust ETF (NYSE:FXA.TO - News) higher by nearly 2% on Thursday.

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