Sell on the Pop Prospects: August 19 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 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.40 ETFs made it to the list of sell on the pop prospects this month. All three market indices gained during the month supported by positive coronavirus vaccine news.Several sector-specific ETFs like Utilities Select Sector SPDR Fund (XLU A), Real Estate Select Sector SPDR Fund (XLRE ), Financial Select Sector SPDR Fund (XLF A) and Energy Select Sector SPDR Fund (XLE A) featured on the list of sell on the pop prospects as the respective sectors gained during the last month.U.S. Global Jets ETF (JETS C) which tracks the performance of the global airline industry was one of the sell on the pop candidates driven by improving demand from higher passenger volume as people start resuming their normal lives.Many regional banking ETFs like SPDR S&P Bank ETF (KBE A) and SPDR S&P Regional Banking ETF (KRE A-) also ranked amidst the sell on the pop candidates as the commercial banking segment gained by more than 5% in the last month.Many energy ETFs like United States Brent Oil Fund (BNO B+) and United States Natural Gas Fund (UNG B-) featured on the sell on the pop list as both oil and natural gas prices gained by more than 4% and 23% respectively, in the last month. Demand rose supported by increased power generation. SPDR S&P Oil & Gas Exploration & Production ETF (XOP B+) and Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 3X Shares (GUSH ) also ranked amidst the sell on the pop candidates. Several energy MLP ETFs such as JPMorgan Alerian MLP Index ETN (AMJ A-) and Alerian MLP ETF (AMLP A) were also present on the list as the energy prices improved. Check out our Energy ETFS’ list here.Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) was one of the sell on the pop candidates driven by growing defense spending and optimism around air travel. You can find more Aerospace and Defense ETFs here.To compare this month’s list with the one published on July 23, 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.

More Equity Commentary

FCG has no more commentary.