Sell on the Pop Prospects: July 21 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.16 ETFs made it to the list of sell on the pop prospects this month. U.S. market closed higher. This month’s sell on the pop prospects list was dominated by bond ETFs. Concerns around the new Delta variant and falling commodity prices pushed bond prices higher.The Vanguard Short-Term Corporate Bond ETF (VCSH A) topped the list of sell on the pop prospects. Pent-up demand and monetary and fiscal stimulus continued to support the prices of corporate bonds.Many mortgage-backed securities ETFs like the Vanguard Mortgage-Backed Securities ETF (VMBS A+) and iShares MBS ETF (MBB A) also featured on the sell on the pop list as the Fed gave no indication as to the reduction of its aggressive bond-buying program.Several long-term treasury bond ETFs like the iShares 7-10 Year Treasury Bond ETF (IEF A-) and Vanguard Long-Term Government Bond ETF (VGLT A-) were also present on the sell on the pop prospects list. Yields on U.S. 10-year Treasury notes declined to 1.316% from 1.509% a month ago. Check out our list of long-term ETFs list here.To compare this month’s list with the one published on June 23, 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

SHY has no more commentary.