Buy on the Dip Prospects: June 16 Edition

Here is a look at ETFs that currently offer attractive short buying opportunities.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.21 ETFs made it to the list of buy on the dip prospects this month. All three US indices increased on receding pandemic concerns and low interest rate environments.Several financial ETFs like the Direxion Daily Financial Bull 3X Shares (FAS A-), SPDR S&P Regional Banking ETF (KRE A-), and SPDR S&P Bank ETF (KBE A) topped this month’s buy on the dip prospects list as the financial sector lost more than 1% in the last month. Here is a list of financial ETFs for your perusal.The Materials Select Sector SPDR Fund (XLB A) also made it to the list as the materials sector lost more than 2% in the last month.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. It was the worst-performing sector this month.The U.S. Global Jets ETF (JETS C) also made it to the list of buy on the dip prospects. The airline segment lost ~0.30% in the last month.Several long-term inverse ETFs like the ProShares UltraShort 20 Plus Year Treasury (TBT A+) and ProShares Short 20 Plus Year Treasury (TBF A+) also featured on the list as the yield on 20-year Treasury bonds fell in the last month.To compare this month’s list with the one published on May 19, 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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