Sell on the Pop Prospects: June 24 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.76 ETFs made it to the list of sell on the pop prospects this month. All three market indices gained nominally during the month on the possibility of the resurgence in coronavirus infections.Direxion Daily Semiconductor Bull 3X Shares (SOXL B) which seeks daily investment results of 300% of the performance of the PHLX Semiconductor Sector Index, topped sell on the pop prospects’ list as the semiconductor segment gained by more than 7% in the last month.Many sector-specific ETFs like Consumer Staples Select Sector SPDR Fund (XLP A), SPDR Dow Jones Industrial Average ETF (DIA A-), SPDR S&P Bank ETF (KRE A-), and First Trust Consumer Discretionary AlphaDEX Fund (FXD A-) featured on the list of sell on the pop prospects as consumer staples, industrial, financial, and consumer discretionary sectors gained by more than 2%, 10%, 8%, and 7%, respectively during the month.A few ETFs focusing on real estate such as iShares U.S. Real Estate ETF (IYR A), iShares Mortgage Real Estate ETF (REM B) and Real Estate Select Sector SPDR Fund (XLRE ) ranked amidst the sell on the pop contenders as real estate sector increased by 9.5% in the last month. U.S. mortgage rates fell to record low increasing the affordability of real estate in the country. Check out the real estate list here.Many corporate/ junk bond ETFs like iShares iBoxx $ High Yield Corporate Bond ETF (HYG A) and iShares 0-5 Year High Yield Corporate Bond ETF (SHYG ) also made it to the list of sell on the pop after the Fed announced that it would start buying these bonds individually.Several emerging market ETFs such as iShares Core MSCI Emerging Markets ETF (IEMG A) and Vanguard FTSE Emerging Markets ETF (VWO A) were sell on the pop contenders this month driven by gains on Wall Street and easing of pandemic-related lockdowns worldwide.Several energy ETFs like United States Brent Oil Fund (BNO B+), United States Oil Fund (USO A), and ProShares Ultra Bloomberg Crude Oil (UCO A) featured on the sell on the pop list as the energy sector gained by nearly 3% in the last month. Crude oil price increased from near $32/ barrel to $40.71/ barrel this month.To compare this month’s list with the one published on May 27, 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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