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Sell on the Pop Prospects: May 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 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 six 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 lower during the month. The U.S. stocks suffer as trade tension between the world’s superpowers persists. Health Care Select Sector SPDR Fund (XLV A) which tracks the S&P 500 health care stocks, topped the list of sell on the pop prospects as healthcare was the third best performing sector returning more than 2% this month. JPMorgan Alerian MLP Index ETN (AMJ A-) also ranked amongst the sell on the pop candidates on improving fundamentals. Easing off interest rate hikes and surging crude oil prices have supported the better performance of the MLP segment this year. Read on to find out why It’s a Great Time for MLP ETFs by clicking here: https://etfdb.com/news/2019/05/20/great-time-mlp-etfs/ Several short term volatility ETFs such as iPath S&P 500 VIX Short-Term Futures ETN (VXX B+), ProShares VIX Short-Term Futures ETF (VIXY A), ProShares Ultra VIX Short-Term Futures ETF (UVXY B-) and VelocityShares Daily 2x VIX Short-Term ETN (TVIX C+) made it to the list of sell on the pop prospects as VIX, the CBOE Volatility index increased from 13 to 16.9 during the month. The market faced increased uncertainty due to trade war anxiety. Compare and contrast the two small-cap ETFs using our “ETF Comparison tool” https://etfdb.com/tool/etf-comparison/TVIX-UVXY/

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

ETFs to Sell on the Pop

Ticker Name Price 1-YearReturn Leverage
(XLV A) Health Care Select Sector SPDR Fund $89.43 7.24% Long
(AMJ A-) JPMorgan Alerian MLP Index ETN $25.48 -6.67% Long
(VXX B+) iPath S&P 500 VIX Short-Term Futures ETN $29.02 -14.60% Long
(VIXY A) ProShares VIX Short-Term Futures ETF $23.84 -15.13% Long
(UVXY B-) ProShares Ultra VIX Short-Term Futures ETF $37.35 -32.46% Double-Long
(TVIX C+) VelocityShares Daily 2x VIX Short-Term ETN $23.54 -50.75% Double-Long

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

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Disclosure: No positions at time of writing.

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