{"id":2822,"date":"2013-05-28T13:43:29","date_gmt":"2013-05-28T17:43:29","guid":{"rendered":"http:\/\/www.morpheustrading.com\/blog\/?p=2822"},"modified":"2022-04-06T15:07:24","modified_gmt":"2022-04-06T19:07:24","slug":"top-3-etfs-buy-now","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/top-3-etfs-buy-now\/","title":{"rendered":"Top 3 ETFs To Buy As Stock Market Pulls Back ($TAN, $SMH, $EWM)"},"content":{"rendered":"

On the morning of May 23, one day after the first significant broad market decline in more than a month, we targeted both\u00a0Guggenheim Solar ETF ($TAN<\/a>)<\/strong>\u00a0and\u00a0Market Vectors Semiconductor ($SMH<\/a>)<\/strong>\u00a0for potential pullback buy entry in our Wagner Daily\u00a0<\/em>newsletter\u00a0(these two ETFs were actually pointed out as potential pullback entries in\u00a0this\u00a0May 22 blog post<\/a>\u00a0one day earlier).<\/p>\n

Because bearish follow-through momentum from the May 22 sell-off carried through into the May 23 open (as anticipated), both ETF swing trade setups triggered for “official” pullback buy entry, and have been acting well since then.<\/p>\n

As of this moment, the rather volatile $TAN is already showing an unrealized gain of 8.9% since our May 23 buy entry of $23.45 <\/strong>(where we grabbed some shares on a pullback to the 10-day MA). From here, we would ideally like to see the ETF build a base of consolidation near the highs, then breakout to a new high within the next several weeks.<\/p>\n

The other trade we entered on the May 23 open was $SMH, which we swiped at $37.68 as it pulled back to test substantial near-term support of its 20-day exponential moving average (for the first time since its breakout).<\/p>\n

The following day, $SMH formed a bullish “hammer” candlestick and closed above its 20-day EMA for the second straight day. The daily chart below illustrates this (based on most recent closing price of May 24):<\/p>\n

\"$SMH<\/p>\n

Based on the healthy pullback of $SMH that is holding the 20-day EMA, the ETF should be well positioned to climb back to the highs as long as the broad market holds steady.<\/p>\n

If we get a little bit of help from the market, in the form of a bounce this week, $SMH should be among the first industry sector ETFs to outperform due to the relative strength $SMH was exhibiting on the way up. \u00a0An added bonus is that we are now back into this ETF at a much lower price than our most recent exit at $38.44<\/a>, when we sold $SMH for a 9% gain on May 13.<\/p>\n

On May 6, iShares Malaysia Index Fund ($EWM) gapped up 6% to a fresh all-time high. Since this was a confirmed breakaway gap<\/em><\/a>, we have been stalking this ETF for the past several weeks, waiting for a base of consolidation to form and the moving averages to rise up and provide support.<\/p>\n

Last Friday (May 24), $EWM gapped down to “undercut” support of its 20-day exponential moving average:<\/p>\n

\"$EWM<\/p>\n

From here, we will be watching to see if $EWM forms some sort of bullish reversal bar and closes back above the 20-day EMA. If it does, it could present a possible buying opportunity the following day (above the prior day’s high). For now, it is not<\/em> actionable on today’s watchlist, but we will be sure to notify subscribers of our nightly swing trade newsletter<\/a> if\/when we decide to buy as an “official” swing trade on our watchlist.<\/p>\n","protected":false},"excerpt":{"rendered":"

On the morning of May 23, one day after the first significant broad market decline in more than a month, we targeted both\u00a0Guggenheim Solar ETF ($TAN)\u00a0and\u00a0Market Vectors Semiconductor ($SMH)\u00a0for potential pullback buy entry in our Wagner Daily\u00a0newsletter\u00a0(these two ETFs were actually pointed out as potential pullback entries in\u00a0this\u00a0May 22 blog post\u00a0one day earlier). Because bearish […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[3],"tags":[],"class_list":["post-2822","post","type-post","status-publish","format-standard","hentry","category-stock-trading-strategy"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/2822","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/comments?post=2822"}],"version-history":[{"count":1,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/2822\/revisions"}],"predecessor-version":[{"id":11592,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/2822\/revisions\/11592"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=2822"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=2822"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=2822"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}