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 8 ETFs made it to the list of sell on the pop prospects this month. U.S. stocks rose as trade talks between the U.S. and China progressed well. Several Asian country ETFs like iShares China Large-Cap ETF (FXI A-), Direxion Daily FTSE China Bull 3X Shares (YINN B) and iShares MSCI South Korea ETF (EWY C+) were the sell on the pop contenders on optimism around U.S.-China trade war. Several volatility ETFs like iPath S&P 500 VIX Short-Term Futures ETN (VXX B+) and ProShares VIX Short-Term Futures ETF (VIXY A) featured on the sell on the pop prospects’ list as the CBOE volatility index moved up to 17.5 from 14.2 last month. Slowing global trade and output continue to increase volatility in the financial markets. ProShares Ultra VIX Short-Term Futures ETF (UVXY B-) and VelocityShares Daily 2X VIX Short-Term ETN (TVIX C+), which seeks daily investment results that correspond to twice the daily performance of the S&P 500 VIX Short-Term Futures Index were also present on the list. Compare and contrast the two volatility ETFs using our ETF Comparison tool
To compare this month’s list with the one published on September 18, click here
ETFs to Sell on the Pop
|(EMLC A-)||VanEck Vectors J.P. Morgan EM Local Currency Bond ETF||$33.53||3.94%||Long|
|(FXI A-)||iShares China Large-Cap ETF||$40.75||3.35%||Long|
|(YINN B)||Direxion Daily FTSE China Bull 3X Shares||$17.63||-4.86%||Triple-Long|
|(EWY C+)||iShares MSCI South Korea ETF||$57.00||-8.09%||Long|
|(VIXY A)||ProShares VIX Short-Term Futures ETF||$20.12||-27.99%||Long|
|(VXX B+)||iPath S&P 500 VIX Short-Term Futures ETN||$24.43||-28.04%||Long|
|(UVXY B-)||ProShares Ultra VIX Short-Term Futures ETF||$27.06||-48.27%||Double-Long|
|(TVIX C+)||VelocityShares Daily 2x VIX Short-Term ETN||$14.12||-65.65%||Double-Long|
Please note that this list is updated on a monthly basis.
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Disclosure: No positions at time of writing.