Before looking at some of the exchange-traded funds with
quantified edges heading into trading on Friday, let's take a quick
review of how the stocks from our
last column
,
5 Stocks for the Next 5 Days
have fared in recent trading.
Basis Monday's close, we looked at five stocks that had become
overbought below the 200-day moving average. All five of these
stocks had closed higher for multiple consecutive trading days
below the 200-day, and earned 2-period RSI readings of well over
90. In fact, all five stocks had 2-period RSI values of more than
98 when they appeared in our
5 Stocks for the Next 5 Days
roster.
And all five stocks have traded significantly lower in the days
since we highlighted these stocks as market to avoid - or sell
short. Shares of
Digital River Inc
(
DRIV
) have closed lower for three days in a row since making our
5 Stocks for the Next 5 Days
roster. Shares of LMT sold off by more than 5% over two days after
making our list.
VeriFone Holdings Inc
(
PAY
) dropped by well over 7% over the three days since appearing in
5 Stocks for the Next 5 Days
. Similar moves were seen in the other stocks from our
5 Stocks
list, with both
Children's Place Rtl Str
(
PLCE
) and
Titanium Metals Corp New
(
TIE
) also closing lower for three days in a row after becoming
dramatically overbought below the 200-day.
Here are 5 ETFs for the Next 5 Days
Heading into the weekend, the biggest edge is clearly in gold.
And not just the gold mining stocks of the
Market Vectors Gold Miners ETF
(
GDX
) , either. Bullion-based funds like the
SPDR Gold Shares
(
GLD
) and the
iShares COMEX Gold Trust
(
IAU
) have also pulled back to levels from which they have historically
reversed and moved higher. Both GLD and IAU have dropped by more
than 2%, closing lower for two out of the past three sessions above
the 200-day moving average.
Traders looking for gold stocks that have pulled back above the
200-day rather than exchange-traded funds may want to keep an eye
on stocks like
Newmont Mining Corp
(
NEM
) and
Yamana Gold Inc
(
AUY
) .
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Another areas were quantified edges have begun to emerge is in
leveraged funds based on technology and the Nasdaq 100. This
include ETFs like the
Direxion Technology Bull 3X Shares
(
TYH
) - down more than 9% on Thursday and closing lower for a third day
in a row - and the
ProShares Ultra QQQ
(
QLD
) . Shares of the QLD have also closed lower for three days in a
row, and fell by more than 6% ahead of trading on Friday.
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David Penn
is Editor in Chief of TradingMarkets.com