Sell on the Pop Prospects: May 26 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.19 ETFs made it to the list of sell on the pop prospects this month. U.S. markets closed lower on inflation concerns and weaker-than-expected housing data.Several corporate bond ETFs like the SPDR Portfolio Intermediate Term Corporate Bond ETF (SPIB), Vanguard Intermediate-Term Corporate Bond ETF (VCIT A+), iShares Broad USD Investment Grade Corporate Bond ETF (USIG), and iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD A-) featured on the list of sell on the pop prospects on the back of strong corporate results, an improving economic outlook, and successful vaccination drives.Several short-term Treasury ETFs like the Vanguard Short-Term Bond ETF (BSV A), 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. The Fed is expected to keep its dovish stance on interest rates. The yield on U.S. 1-year Treasury bills fell to 0.047% from 0.060% one month ago.Intermediate- and long-term Treasury ETFs like the iShares 7-10 Year Treasury Bond ETF (IEF A-), Vanguard Intermediate-Term Bond Fund (BIV A), and Vanguard Intermediate-Term Government Bond ETF (VGIT A) were also present on the sell on the pop prospects list. Check out our list of intermediate-term ETFs here.The United States Natural Gas Fund (UNG B-) also ranked among the sell on the pop candidates as natural gas prices rose by nearly 10% in the last month.To compare this month’s list with the one published on April 28, 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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