Sell on the Pop Prospects: August 18 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 due to 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 prospect 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.To get access to all premium content, sign up for a free 14-day trial to Pro.Only 5 ETFs made it to the list of sell on the pop prospects this month. The U.S. market closed higher. The stock market gained upon the approval of President Biden’s $1 trillion infrastructure plan, improving unemployment rates, and increasing consumer confidence.ETFs focusing on the environment are gaining a lot of traction lately. Growing demand for clean and green energy and rising climate change concerns are the main reasons for this growth. Our list of sell on the pop prospects was topped by ETFs like the Invesco Solar ETF (TAN B) and the iShares Global Clean Energy ETF (ICLN A-).The ARK Innovation ETF (ARKK ), which focuses on disruptive innovation stocks, also made it to the list as the technology sector gained by more than 1% in the last month.Biotechnology ETFs like the SPDR S&P Biotech ETF (XBI B-) and the Direxion Daily S&P Biotech Bull 3x Shares (LABU ) featured on the sell on the pop prospects list as the biotechnology sector gained by more than 2% in the last month. The biotech sector is poised to gain on growing drug demand for treating diseases. Compare and contrast the two biotech bond ETFs using our ETF Comparison tool.To compare this month’s list with the one published on July 21, click here.ETFs to Sell on the PopPlease note that this list is updated on a monthly basis.For more ETF analysis, make sure to sign up for our free ETF newsletter.Disclosure: No positions at time of writing.

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