Wednesday, July 29, 2009

7 ETFs You Need to Know for Thursday

By David Penn

The iShares FTSE/Xinhua China 25 ETF (FXI | Chart | News | PowerRating) plunged by more than 4% on Wednesday after closing higher for five consecutive trading days (nine out of the past ten). Also closing lower and into oversold territory on the day was the ETF representing fellow BRIC member, the iShares MSCI Brazil Index ETF (EWZ | Chart | News | PowerRating), which lost more than 2%.

The ProShares Ultra S&P 500 ETF (SSO | Chart | News | PowerRating) have moved from being extremely overbought to mildly oversold in just three days as the stock's RSI slid from more than 99 to less than 24.

Representing a true breakdown in the price of crude oil, the United States Oil Fund (USO | Chart | News | PowerRating) fell by more than 6% intraday on Wednesday. Unsurprisingly, the Market Vectors Russia ETF (RSX | Chart | News | PowerRating) lost more than 3% and is now oversold above its 200-day moving average.

The sell-off in energy commodities and energy stocks has helped vault the ProShares UltraShort Oil & Gas ETF (DUG | Chart | News | PowerRating) into overbought territory below the 200-day.

The most widely traded ETF representing the United Kingdom, the iShares MSCI United Kingdom Index ETF (EWU | Chart | News | PowerRating), joined the iShares Germany ETF in oversold territory above the 200-day. The iShares Germany ETF was featured in yesterday's TradingMarkets 7 ETFs You Need to Know.

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