TradingMarkets 7 ETFs You Need to Know for Monday

• By David Penn
• On 5:16 pm EDT, Friday October 16, 2009

The widely-anticipated profit-taking arrived on Friday, sending country and equity indexes lower by more than 2% in many instances. Top ETF PowerRatings exchange-traded funds (ETFs) include: EWY, KRE, IYR.

Here are 7 ETFs You Need to Know for Monday.

Among country ETFs pulling back on Friday were the iShares FTSE/Xinhua China 25 Index Fund ETF (NYSE:FXI - News) and the iShares MSCI Japan Index Fund ETF (NYSE:EWJ - News), both of which lost well over 1% on the day.

Small cap stocks were under strong selling pressure on Friday, sending shares of ETFs like the iShares Russell 2000 Index Fund ETF (NYSE:IWM - News) lower by over 1% and into oversold territory above the 200-day moving average.

Meanwhile, climbing into overbought territory below the 200-day moving average are inverse or short ETFs like the ProShares UltraShort Semiconductor ETF (NYSE:SSG - News) and the Direxion Daily Financial 3x Bear Shares ETF (NYSE:FAZ - News). SSG gained more than 4% on Friday. FAZ advanced by more than 6%.

Speaking of semiconductors, the ProShares Ultra Semiconductor ETF (NYSE:USD - News) continued to move lower again on Friday, dropping by another 4% on the day and moving into oversold territory above the 200-day.

Also pulling back on Friday were shares of the Materials Select Sector SPDRS ETF (NYSE:XLB.TO - News) which includes stocks such as Dupont (NYSE:DD - News) and Newmont Mining (NYSE:NEM - News). XLB had spent the past eight consecutive days in overbought territory.

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