Sell on the Pop Prospects: March 31 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 ETFdb.com premium content, sign up for a free 14-day trial to ETFdb.com Pro.Only 18 ETFs made it to the list of sell on the pop prospects this month. The market sent mixed signals with Nasdaq registering a fall while the Dow Jones closed high on the back of tumbling oil, rising treasury yields, and a COVID-19 surge in Europe.Several corporate bond ETFs like SPDR Portfolio Long Term Corporate Bond ETF (SPLB), Vanguard Long-Term Corporate Bond ETF (VCLT B+), and iShares Broad USD Investment Grade Corporate Bond ETF (USIG) featured on the list of sell on the pop prospects on an improving economic outlook driven by economic recovery, vaccine rollouts, and the recent stimulus package.Many gold ETFs such as the iShares Gold Trust (IAU A), SPDR Gold MiniShares Trust (GLDM), and SPDR Gold Shares (GLD A-) also ranked amongst the sell on the pop prospects as gold prices increased by ~4% in the last month.Several short-term Treasury ETFs like the SPDR Portfolio Short Term Treasury ETF (SPTS), iShares 1-3 Year Treasury Bond ETF (SHY A), and Vanguard Short-Term Government Bond ETF (VGSH A) made it to the list of sell on the pop as the yield on U.S. 1-year Treasury bill declined by more than 9% in the last month.Long-term Treasury ETFs like SPDR Portfolio Long Term Treasury ETF (SPTL) and iShares 20 plus Year Treasury Bond ETF (TLT B-) were also present on the sell on the pop prospects list.To compare this month’s list with the one published on March 3, 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