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 prospects 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.
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Only two ETFs made it to the list of sell on the pop prospects this month. All three major U.S. indices, Dow, S&P 500 and NASDAQ moved higher during the month. SPDR S&P Metals & Mining ETF (XME A) which tracks the performance of an index of U.S. metals and mining companies topped the sell on the pop prospects list as the metals and mining sector gained by more than 5% this month. Check out our list of top Metals ETFs by clicking here: https://etfdb.com/etfdb-category/metals/ Direxion Daily S&P Biotech Bull 3X Shares ETF (LABU ) which seeks 300% of the daily investment results of S&P Biotechnology Select Industry Index’s performance, was the second constituent on the sell on the pop prospects’ list this month. The biotechnology sector got a boost from the positive collaboration between the biotech major Gilead Sciences and Galapagos. Hookipa Pharma Inc, a clinical stage biotechnology company also surged after the FDA cleared its IND Application for a phase I/II trial of a drug for HPV positive cancer.
To compare this month’s list with the one published on June 26, click here
ETFs to Sell on the Pop
|(XME A)||SPDR S&P Metals & Mining ETF||$28.27||-23.14%||Long|
|(LABU )||Direxion Daily S&P Biotech Bull 3x Shares||$48.15||-55.99%||Triple-Long|
Please note that this list is updated on a monthly basis.
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Disclosure: No positions at time of writing.