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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A total of 7 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 Retail ETF (XRT A) which tracks the performance of the U.S. retail industry, topped the list of sell on the pop prospects as all the segments of retail – internet, multiline and specialty posted gains during the month. Many small cap ETFs such as iShares Core S&P Small-Cap ETF (IJR A-) and Direxion Daily Small Cap Bull 3X Shares (TNA B) were sell on the pop candidates this month. The S&P Small Cap Index also moved higher by more than 2% during the month. Compare and contrast the two small-cap ETFs using our “ETF Comparison tool.":http://etfdb.com/tool/etf-comparison/IJR-TNA/ SPDR S&P Regional Banking ETF (XRT A) also featured on the list of sell on the pop prospects as financials was the best performing sector this month. Several oil ETFs such as SPDR S&P Oil & Gas Exploration & Production ETF (XOP B+) and VelocityShares 3x Long Crude Oil ETN (UWT n/a) ranked amongst the sell on the pop candidates, as oil price gained by more than 10% this month. Oil price increased as the U.S. contemplates shutting down Iranian crude exports.
To compare this month’s list with the one published on April 3, click here.
ETFs to Sell on the Pop
Please note that this list is updated on a monthly basis.
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Disclosure: No positions at time of writing.