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 five-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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S&P Retail SPDR (XRT A), which seeks to replicate the performance of an equal-weighted index of stocks in the U.S. retail industry, ranked third in the Sell on the Pop list this week, as retail segment performance continued to stay strong. Both food and staples retail as well as multiline retail exhibited strong performance in the last five days. Natural Gas -3X Inverse ETN Velocityshares (DGAZ C) made it to the Sell on the Pop list this week, as natural gas prices were down by more than 8% in the last 7 days. Gold Miners Bear 3X Direxion ETF (DUST B-) and Direxion Junior Gold Mine Bear 3X (JDST ) were amongst the sell on the pop candidates this week, as gold prices fell. Investors factored in an expectation of positive U.S. nonfarm payrolls data that increases the chances of a rate hike in mid June. This is likely to diminish the appeal of the yellow metal. Compare the performance of different precious metals by using ETFdb.com’s category page. To compare and contrast this week’s list with last week’s, take a look at Sell on the Pop Prospects: May 29 Edition.
ETFs to Sell on the Pop
|(SLV C+)|| |
Silver Trust Ishares
|(VNQ A+)|| |
REIT Index ETF Vanguard
|(XRT A)|| |
S&P Retail SPDR
|(TLT B-)|| |
20 Year Bond Ishares
|(OIH B+)|| |
Oil Services Vaneck ETF
|(DGAZ C)|| |
Natural Gas -3X Inverse ETN Velocityshares
|(DUST B-)|| |
Gold Miners Bear 3X Direxion ETF
|(JDST )|| |
Direxion Junior Gold Mine Bear 3X
Please note that this list is updated on a weekly basis.
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Disclosure: No positions at time of writing.