Most Overbought and Oversold US ETFs

We recently analyzed the 800+ US ETFs to see which ones were the most overbought and oversold relative to their 50-day moving averages.  As shown below, four double short commodity ETFs top the most overbought list, with the homebuilder ETF (XHB) ranking fifth.  Other notables on the overbought list include KRE and IAT (regional banks), DUG (inverse oil & gas stocks), XRT (retailers), KBE and PJB (banks), and DGZ (inverse gold).

click to enlarge

On the flip side, all of the long and double long commodity ETFs are trading the furthest below their 50-day moving averages.  Coal and mining ETFs such as KOL and XME are also very oversold, along with Russia (RSX) and South Korea (EWY).

Investors looking for a continuation of current market trends may want to look at the overbought list for buys, while investors expecting a reversion to the mean in the coming days may want to sell the overbought list and buy the oversold list.   

Comments

[Marc Courtenay:]

This was very helpful and I'm surprised there weren't more comments. Thanks to Bespoke for making this information available.

2008 Sep 04 02:18 PM

[emario:]

Would enjoy more articles similar to this. Best of luck trading.

2008 Dec 31 09:19 AM