Leveraged ETFs for 2010

Here are the top oversold and overbought ETFs for 2010 for all these timeframes.

We track all leveraged ETFs on the market here. We computed the daily, weekly, and monthly RSI values of all leveraged ETFs in the U.S stock market. We then sorted them based on three timeframes, short term (days), medium term (weeks), and long term (months).

Since leveraged ETFs are very dangerous and have caused 'buy and hold' investors hundreds of billions of dollars in losses, they are not really indicated for medium and long time frames, they really should only be used in the short term. The lists below can help you get a good indication of what is overbought and oversold, i.e, what to buy and what to sell.

The lists show the ETF symbol, ETF name, last price, and RSI7 daily, weekly, and monthly values.

These are the 2009 returns, all ETFs in one huge chart (please click to enlarge):




1. Short Term

1.1. Oversold:



Clearly oversold in this timeframe are RTW (Rydex Inverse 2x S&P Select Sector Technology), YCL (ProShares Ultra Yen), and an oil ultra short ETN, DTO (PowerShares DB Crude Oil Dble Short)


1.2 Overbought:



In the overbought category here we have YCS (ProShares UltraShort Yen), UCO (ProSharesUltra DJ-AIG Crude Oil), and RTG Rydex 2x S&P Select Sector Technology).


2. Medium Term

2.1 Oversold

Clearly oversold here is RTW (Rydex Inverse 2x S&P Select Sector Technolog).

2.2 Overbought



Overbought includes ROM, RTG, LTL


3. Long Term

3.1 Oversold



Oversold: EEV (UltraShort MSCI Emerging Markets), CMD (ProShares UltraShort DJ-AIG Commodity), REW (ProShares UltraShort Technology)

3.2 Overbought:



The only overbought ETF is ROM (Powershares Ultra Technology). Again, please remember that these leveraged ETFs suffer from any longer timeframe holding. This is clearly reflected in the lact of overbought names above.


4. Top 10 ETFs based on Average RSI

Below is a list created based on te average of all three timeframes.

Top 10 Oversold:

Top 10 Overbought:

A new name here is BBD ETN (PowerShares DB Base Metals Double Long), and notice QLD (the ultra long QQQ version).

Please note that you may receive technical analysis and alerts of any of these ETFs by entering the symbols in the Technical Trend Analysis Tool, (powered by INO). Better yet, you can get two months of risk-free access to the real-time stock alert tool here (exclusive for Shocked Investor readers).

Please do your own due diligence.

Names

Here are the ETF names, as well as their average daily trading volume:


(please click to enlarge image)

ETFs for 2010, for all time frames

Investors who are looking at ETFs for 2010 should look at the RSI values for the respective time frame that are interested in.

There are nearly 800 ETFs that trade in the U.S. By looking at the RSI values and then sorting them by RSIs weekly and monthly, ascending and descending order. Below you will find the top 25 for each category, for the long term (measured in months) and for the medium term (measured in weeks). In total there are more than 50 ETFs listed.

The Relative Strentgh Indicator is a great tool that shows overvalued and oversold conditions. Typically, values over 70 indicate overbought conditions, and values below 30 show oversold conditions. The greater or lower than these thresholds, the more extreme and unsustainable the the conditions are.

Top 25 To Buy Long Term:

The most oversold ETFs in the long term category are EEV, ultra short emerging market, and CMD, Ultra short commodities.

UNG, the poor natural gas performer is in the list, as is DUG (ultra short oil co's). Interesting to see these two in the same list.

Other very recognizable names are FXP, the ultra short China ETF, as well as QID (ultra short Nasdaq/QQQ). QQQ is on the weekly to sell list (please see below).

Top 25 to Sell Long Term:

Here the most oversold are somewhat exotic instruments PVI (short-term tax-exempt variable-rate demand obligations ,VRDOs, issued by municipalities in the United States), and SHV (short treasury bonds). Unless you really know what these are, it's best to stay away. Another name on the list is PXR, which tracks "price and yield performance of S-Network Emerging Infrastructure Builders index, normally investing at least 90% of total assets in the securities and ADRs and Global Depository Receipts, GDRs.

PKOL tracks the largest and most liquid companies involved in the exploration for, and mining of coal, as well as other related activities in the coal industry.

RTR is in there as well, it's an interesting one ("is an exchange-traded fund that seeks to achieve its investment objective of outperforming the total return performance of the S&P ADR Index by investing in the constituent securities of the S&P ADR Index in the same proportions as the RevenueShares ADR Index.")

A collection of strange ETfs for sure.

Top 25 To Buy Medium Term:




RTW is a 2x bear (inverse) technology ETF. Similarly, TLL is an ultra-short telecom ETF. Sounds like a theme.

Top 25 to Sell Medium Term:

HYG is High Yield Corporate Bond ETF. JNK, you can guess what it means (junk bonds!), Barclays Capital High Yield Very Liquid Index. Same story for PHB, Powershares version, High Yield Corporate Bond Portfolio.

Perhaps the most recognizable name there is QQQ. its weekly RSI is 77.2 It's daily RSI is also very high at 74.53. The monthly is getting there at 65.43. These are scary (too high) numbers that reflect the general market valuations.

These are the ETF names:

(Please click to enlarge)

To receive technical analysis and alerts of these ETFs sent automatically to you, simply enter the symbols in the Technical Trend Analysis Tool.

Please do your own due dilligence.

Update on Commodity ETFs To Diversify From US Dollar

Commodity ETFs are great to diversify against the fall of the U.S. dollar.

Here are the RSI values for all commodity ETFs and ETNs on the market. Here they are, sorted for the short term and long term:

Short term, ordered from most oversold to most overbought:


(please click to enlarge)

The most oversold are JJG and GRU, both grains-oriented. The most overbought is sugar.

Long term, ordered from most oversold to most overbought:



Most oversold here are COW and DYY, livestock. Most overbought are UCD and UCI. UCD is a double long on the Dow Jones—UBS Commodity Index (a highly liquid and diversified benchmark that allows investors to track 19 commodities futures market). UCI is an Etracks linked to CMCI Total Return Index

Here are their names, in alphabetical order:



We track all commodity ETFs live here.

You may receive technical analysis and alerts of these ETFs and ETNs, sent automatically to you, by entering the symbols in the Technical Trend Analysis Tool, (powered by INO).

Currency ETFs update

Here is an updated view on the currency ETFs. RSI numbers were calculated on all currency ETFs on the market. This identifies those are that are oversold and overbought and may then be used as indicators for the top ETFs to buy and to sell.

Short term (RSI daily):

(please click to enlarge)

In the short term, some ETFs are extremely oversold: URR, EU, ERO, FXE, all related to long Euro positions. The overbought ETFs are DRR and EUO, both double short Euro.

Long Term:

Using longer timeframes, there are no oversold currencies, although EUO is getting close (interestingly, this one is overbought in the short term, as above). The Japanese Yen and Australian dollar are the most overbought ones.

Names and volumes

For your convenience, here are the names of these currency ETFs and average volumes:

Note that we track these ETFs live as one of our Tracking Live sites.

You may receive alerts of these currency ETFs sent automatically to you by entering the symbols in the Technical Trend Analysis Tool, (powered by INO).

Please do your own due dilligence.

Current oversold and overbought ETFs

There are over 770 ETFs on the U.S. market. Their RSI values give a very good indication of overbought and oversold levels. Here are the top 20 most overbought and most oversold.

You can receive free technical analysis and buy/sell alerts of these stocks for short, medium, amd long terms, sent automatically to you, by entering the ETF symbols in the Technical Trend Analysis Tool, (powered by INO).

Top 20 oversold in the short term (ordered by RSI 7 daily):




Note how the oil ETfs are short-term oversold (as of Dec 11 EOD).

Top 20 Overbought:



Note how utilities and bonds were overbought. Note the junk ETFs is there as well.


For convenience, here are their names and average volumes:





As always, please do your own due dilligence.

A new look at Dividend ETFs

Here are the dividend ETFs sorted by RSI7. This gives a very good indication of what to buy what to sell, depending on the desired specific timeframe.

Short term (RSI daily), from most oversold to most overbought:




Note that none are strictly oversold or overbought.

Long Term: (RSI monthly)



Again, none are overbought or oversold.

These are the ETF names and average trading volumes:




You may receive technical analysis and alerts of these stocks, sent automatically to you, by entering the symbols in the Technical Trend Analysis Tool, (powered by INO).

Please do your own due dilligence.

An ETF for the fight against global carbon

"These long overdue findings cement 2009's place in history as the year when the U.S. government began addressing the challenge of greenhouse-gas pollution and seizing the opportunity of clean-energy reform," said Lisa Jackson, EPA administrator.

The Environmental Protection Agency said today that greenhouse gases are a danger to public health, a decision that may lead to new emissions regulations, in the form of new emission standards for cars, while potentially opening up large emitters such as power plants, crude-oil refineries and chemical plants to limits on their output of carbon dioxide and other gases.

Regardless of whether you are believe in global warming or deny it, a potentially good way to profit from this decision is ghrough the Global Carbon Capture ETF, GRN. It is an iPath ETF, and it is up 6% today, but is done 6% YTD:





Note that we track all commodity ETFs live here.

As a bonus, GRN is uncorrelated to pretty much all other commodity ETFs on the maket. That is a huge plus for diversification, please see our previous article.

About GRN:



The Barclays Capital Global Carbon Index Total Return™ ("BGCITR") is designed to measure the performance of the most liquid carbon-related credit plans and is designed to be an industry benchmark for carbon investors. Each carbon-related credit plan included in the BGCITR is represented by the most liquid instrument available in the marketplace. The BGCITR expects to incorporate new carbon-related credit plans as they develop around the world. The BGCITR currently includes two carbon-related credit plans: European Union Emission Trading Scheme or EU ETS Phase II and Kyoto Protocol's Clean Development Mechanism.

A look at the best global currency ETFs

We computed the RSI values of all currency ETF and ETNs on the market, then sorted them by short and long time frames. Here they are:

Short term:

The two most oversold ETFs are XRU and CYB, the Ruble and Yuan. There are no overbought ETFs, but the most expensive ones, RSI-wise and with non-insignificant volume, are the double short Euro and the Mexican Peso.

Long term:



Note: we track all currency ETFs live as part of our live tracking sites.

Long term, the only oversold ETF is EUO, also a double short Euro. There are three overbought ETFs, ERO (long Euro), Swiss Franc, and Australian dollar. Interestingly, the currency that has appreciate the most this year, the Brazilian Rea,l is not near the most overbought ones.

For your convenience, here are the names of the ETFs and their average volumes:




You may receive technical analysis and alerts of these stocks, sent automatically to you, by entering the symbols in the Technical Trend Analysis Tool, (powered by INO).

Please do your own due dilligence.