Sell on the Pop Prospects: April 29 Edition

Here is a look at ETFs that currently offer attractive short selling opportunities.

The ETFs included in this list are rated as sell candidates for two reasons. First, each of these funds is deemed to be in a downtrend based on the fact that its 50-day moving average is below its 200-day moving average, which are popular indicators for gauging long-term and medium-term trends, respectively.

Second, each of these ETFs is also trading above its 20-day moving average, thereby offering a near-term “sell on the pop” opportunity given the longer-term downtrend at hand. Note that this prospect list also features a liquidity screen by excluding ETFs with average trading volumes below the one million shares mark. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques.

To get access to all ETFdb.com premium content, sign up for a free 14-day trial to ETFdb.com Pro.

All three market indices increased during the month, as market sentiment improved on plans for reopening the economy, crude market stability and relief on stimulus packages. Several Asian market ETFs like iShares MSCI Hong Kong ETF (EWH A), iShares MSCI Japan ETF (EWJ A) and iShares MSCI South Korea ETF (EWY C+) made it to the list of sell on the pop prospects following the wider Wall Street gains and optimism around economic stimulus measures from global central banks to deal with the impact of the COVID-19 pandemic. iShares MSCI China ETF (MCHI A) was also present on the sell on the pop prospects’ list. iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB A-) made it to the list too, as investors enter the risk-on mode after the Fed balance sheet expanded to record size. Many junk/ corporate bond ETFs like iShares Broad USD High Yield Corporate Bond ETF (USHY), iShares iBoxx $ High Yield Corporate Bond ETF (HYG A) and SPDR Bloomberg Barclays High Yield Bond ETF (JNK A+) featured on the sell on the pop list as the U.S. Federal Reserve announced its plans to buy these bonds in the open market, in response to COVID crisis. Several precious metals ETFs like Direxion Daily Gold Miners Bull 3X Shares (NUGT C+) and iShares Silver Trust (SLV C+) made it to the sell on the pop list as prices of both the metals increased by more than 4% and 8%, respectively, in the last month. These ETFs acted as safe havens for investors during these trying times. Many sector based ETFs such as Materials Select Sector SPDR Fund (XLB A), Consumer Staples Select Sector SPDR Fund (XLP A), Utilities Select Sector SPDR Fund (XLU A), Communication Services Select Sector SPDR Fund (XLC), Consumer Discretionary Select Sector SPDR Fund (XLY A) and Industrial Select Sector SPDR Fund (XLI A) ranked amidst the sell on the pop contenders as the respective sectors gained during this month. Many real estate ETFs like Real Estate Select Sector SPDR Fund (XLRE ), iShares U.S. Real Estate ETF (IYR A) and Vanguard REIT ETF (VNQ A+) were present in the list as both real estate and REIT sectors gained by more than 28% in the last month. Cell phone towers, industrial warehouses and cold storage REITs continued to outperform. You can track different real estate funds by regions here .

To compare this month’s list with the one published on April 1, click here.

ETFs to Sell on the Pop

Please note that this list is updated on a monthly basis.

For more ETF analysis, make sure to sign up for our free ETF newsletter.

Disclosure: No positions at time of writing.

Click here to read the original article on ETFdb.com.