TradingMarkets 7 ETFs You Need to Know for Monday

• By David Penn
• On 4:04 pm EDT, Friday October 30, 2009

As the sell-off in U.S. markets intensified into week's end, the number of exchange-traded funds (ETFs) trading at oversold extremes has soared. More than 120 ETFs have earned top ETF PowerRatings of 9 or 10 as of Friday's close, including funds like the iShares MSCI Brazil Index Fund ETF (NYSE:EWZ - News) and the Rydex S&P Equal Weight ETF (NYSE:RSP - News).

Here are 7 ETFs You Need to Know for Monday.

Among those ETFs earning our highest ETF PowerRating of 10, the iShares MSCI Taiwan Index Fund ETF (NYSE:EWT - News) which pulled back by more than 2% on Friday. EWT has closed in oversold territory above the 200-day moving average for seven out of the past eight trading days.

Also among our highest rated ETFs - with an ETF PowerRating of 9 - is the SPDRS S&P 500 ETF (NYSE:SPY - News). The ETF closed off its lows, but remained lower by more than 2% on Friday.

Selling was heavy in energy and basic materials ETFs, with the ProShares UltraShort Basic Materials ETF (NYSE:SMN - News) soaring by nearly 7% late in trading on Friday. Trading below its 200-day moving average, SMN has not yet re-entered overbought territory.

Meanwhile, a drop of more than 3% in December crude oil meant lower prices for oil companies like Schlumberger (NYSE:SLB - News) and Occidental Petroleum (NYSE:OXY - News), both off more than 4%. Correspondingly, the Energy Select Sector SPDRS ETF (NYSE:XLE - News) lost more than 3%, while the ProShares Ultra Oil & Gas ETF (NYSE:DIG - News) slid well over 6% and back into oversold territory above the 200-day.

Closing lower for the fifth day out of the past six was the ProShares Ultra Financials ETF (NYSE:UYG - News). The ETF was down more than 7% on Friday.

The iPath S&P 500 VIX Short Term Futures ETN (NYSE:VXX - News) advanced by more than 9% on Friday as aggressive selling pushed equity markets lower. ETFs like VXX are used by both traders and investors as bets on volatility as well as to hedge against downside risk.

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Buzz up!