Buy on the Dip Prospects: August 14 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 long-term and medium-term trends, respectively.Second, each of these ETFs is also trading below its five-day moving average, thereby offering a near-term ‘buy on the dip' opportunity, given the longer-term uptrend at hand. Note that this prospects 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 ETFdb.com premium content, sign up for a free 14-day trial to ETFdb.com Pro.57 ETFs made it to the list of buy on the dip prospects this month. The three major U.S. indices moved lower during this month. Stocks dipped in response to China devaluing its currency, heightening the trade war situation between the two nations. A weaker yuan makes Chinese goods cheaper in global trading.Markets worldwide felt the tremors of this move, with a majority of them moving lower. Several Asian countries’ ETFs such as iShares MSCI Taiwan ETF (EWT A-) and iShares MSCI Japan ETF (EWJ A) were present on the list of buy on the dip prospects. Check out the different Countries’ ETFs by clicking here.Major sectoral ETFs such as technology, industrials, consumer discretionary, and financials fell following the general decline in the market. Technology Select Sector SPDR Fund (XLK A), Materials Select Sector SPDR Fund (XLB A), and Consumer Discretionary Select Sector SPDR Fund (XLY A) featured on the list of buy on the dip prospects as the sectors declined by 0.05%, 0.26% and 2.5%, respectively this month. Both technology and consumer discretionary sectors witnessed heavy sell-off, as the global trade war escalated.Health Care Select Sector SPDR Fund (XLV A) was one of the buy on the dip contenders as the healthcare sector fell by 2% during the month. SPDR S&P Biotech ETF (XBI B-) was also present on the list as the biotech segment also declined by 1.5% during the month.Industrial ETFs such as S&P 500 Industrial Sector SPDR (XLI A) and SPDR Dow Jones Industrial Average ETF (DIA A-) which track an index of S&P 500 stocks in the industrial sector also made it to the list. Industrials was one of the worst performing sectors losing 1.2% this month.Financial Select Sector SPDR Fund (XLF A) which tracks an index of S&P 500 financial stocks also made it to the list of buy on the dip prospects. Financial was the second worst performing sector declining by 2.9% this month. Bank stocks get slammed on rising trade war issue and falling yields on treasury bonds.To compare this month’s list with the one published on July 17, 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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