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 prospects 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.
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- Only 9 ETFs made it to the list of sell on the pop prospects this month. US markets ended higher. Factors contributing to the increase in the US market were strong corporate earnings, particularly in the tech and financial sectors, an interest rate cut by the Federal Reserve, and a temporary de-escalation of US-China trade tensions.
- United States Natural Gas Fund (UNG ) topped the sell on the pop list last month, as US natural gas prices surged, driven by forecasts for colder weather boosting domestic heating demand, combined with a strong outlook for LNG exports to Europe and Asia. ProShares Ultra Bloomberg Natural Gas (BOIL ) was another natural gas-focused fund on the list. Check out our Energy ETFs’ list here
- iShares U.S. Medical Devices ETF (IHI ) that focuses on the medical device makers ranked second on the list. US medical device prices were influenced last month by new and escalating import tariffs, making medical devices dearer.
- United States Oil Fund (USO ) was another sell on the pop contender as oil prices edged up, with OPEC+ planning to end its supply increases. The market, however, was impacted by fears of an oil supply glut and weak factory data in Asia. ProShares Ultra Bloomberg Crude Oil (UCO ) was another oil-focused fund on the list. Alerian MLP ETF (AMLP ) also made it to the list.
- YieldMax TSLA Option Income Strategy ETF (TSLY ) featured on the sell on the pop list. Tesla’s stock price increased in the last month primarily due to investor optimism surrounding advancements in its artificial intelligence (AI) and Full Self-Driving (FSD) technology, as well as speculation about its potential in robotics. However, analysts are concerned that cheap new models and stiff global EV competition threaten to squeeze profit margins.
- To compare this month’s list with the one published on October 15th, click here.
| Ticker | Name | Last | 1-Year Return | Leverage |
|---|---|---|---|---|
| (UNG ) | United States Natural Gas Fund | 13.76 | Long | |
| (IHI ) | iShares U.S. Medical Devices ETF | 60.74 | Long | |
| (USO ) | United States Oil Fund | 72.74 | Long | |
| (AMLP ) | Alerian MLP ETF | 46.62 | Long | |
| (BIZD ) | VanEck Vectors BDC Income ETF | 14.37 | -10.63% | Long |
| (BOIL ) | ProShares Ultra Bloomberg Natural Gas | 32.05 | -12.07% | Double-Long |
| (UCO ) | ProShares Ultra Bloomberg Crude Oil | 21.67 | -16.36% | Double-Long |
| (YMAG ) | YieldMax Magnificent 7 Fund of Option Income ETFs | 15.53 | -17.35% | Long |
| (TSLY ) | YieldMax TSLA Option Income Strategy ETF | 8.67 | -27.27% | Long |
ETFs to Sell on the Pop
Please note that this list is updated on a monthly basis.
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Disclosure: No positions at time of writing.
