Buy on the Dip Prospects: July 14 Edition

The ETFs included in this list are rated as buy candidates for two reasons. First, each of these funds is deemed to be in an uptrend based on the fact that its 50-day moving average is above its 200-day moving average, which are popular indicators for gauging medium-term and long-term trends, respectively.Second, each of these ETFs is also trading below its 20-day moving average, thereby offering a near-term “buy on the dip” opportunity given the longer-term uptrend at hand. Note that this 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.89 ETFs made it to the list of buy on the dip prospects this month. The market closed mixed, driven by gains in the technology, utilities, and real estate sectors but pulled down by the energy and financials sectors.Several energy ETFs like the Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 3X Shares (GUSH ), SPDR S&P Oil & Gas Exploration & Production ETF (XOP B+), and Direxion Daily Energy Bull 3X Shares (ERX C+) featured on the buy on the dip prospects list as the energy sector declined by over 6% in the past month. It was the worst-performing sector this month. Oil prices suffered as OPEC rejected calls to increase supply.Many ETFs focusing on the financial sector, such as the Direxion Daily Financial Bull 3X Shares (FAS A-) and Financial Select Sector SPDR Fund (XLF A), also made it to the list as the financials sector lost 6%+ in the last month. It was the second worst-performing sector this month. Compare and contrast the two financial ETFs using our ETF Comparison tool.The Materials Select Sector SPDR Fund (XLB A) featured on the list of buy on the dip prospects as the materials sector declined by more than 6% in the last month. It was the third-worst performing sector.The Industrial Select Sector SPDR Fund (XLI A) ranked amidst the buy on the dip candidates as the industrial sector also fell by over 2% in the last month.The U.S. Global Jets ETF (JETS C) also made it to the list as many passengers are still cautious about air travel. The airline segment lost more than 12% in the last month.The Consumer Staples Select Sector SPDR Fund (XLP A) was one of the buy on the dip candidates. The consumer staples segment dipped more than 0.6% in the last month.To compare this month’s list with the one published on June 16, click here.ETFs to Buy on the DipPlease 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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