TradingMarkets 7 ETFs You Need to Know for Thursday

• By David Penn
• On 3:50 pm EST, Wednesday November 11, 2009

The financial and materials sectors provided leadership to the upside on Wednesday, helping the major equity indexes climb even higher into overbought territory above the 200-day moving average. Precious metals ETFs such as the SPDR Gold Trust ETF (NYSE:GLD - News) outperformed oil ETFs like the United States Oil Fund ETF (NYSE:USO - News).

Here are 7 ETFs You Need to Know for Thursday.

Up more than 2% late in trading on Wednesday was the ProShares Ultra Financials ETF (NYSE:UYG - News), indicative of the continued strength in the sector. UYG has closed in overbought territory above the 200-day for a third consecutive trading session.

Joining gold and health care ETFs among those that are at overbought extremes above the 200-day and overdue for pullbacks are ETF linked to the Nasdaq 100. This includes not only the PowerShares QQQ Trust ETF (NYSE:QQQQ - News) - which has had a 2-period RSI of more than 90 for five consecutive days - but also the ProShares Ultra QQQ ETF (NYSE:QLD - News). QLD is leveraged two-to-one to the daily return of the Nasdaq 100 Index.

Soaring to its highest closing levels in more than 12 days was the SPDR Homebuilders ETF (NYSE:XHB - News), which gained nearly 3% on Wednesday.

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The few ETFs that are moving toward oversold territory in recent days tend to be oil-related, such as the SPDR S&P Oil & Gas Exploration & Production ETF (NYSE:XOP - News). XOP still remains above its 5-day moving average, as it has for the past six trading days.

The most oversold country ETF trading above the 200-day? Take a look at the iShares MSCI United Kingdom Index Fund ETF (NYSE:EWU - News), which pulled back by 1% on Thursday two days after gapping higher by 3%.

With the VIX stretching more than 10% below its 10-day moving average, buyers expressed interest in the iPath S&P 500 VIX Short Term Futures ETN (NYSE:VXX - News), which closed higher for a second day in a row after falling precipitously for three out of the previous four.

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