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Buy on the Dip Prospects: October 9 Edition

BY | ETF Database
10/09/2024 | 254 VIEWS
Below is a look at ETFs that currently offer attractive buying opportunities. The ETFs included in this list are rated as buy candidates for two reasons. First, each of these funds is deemed to be in an uptrend based on the fact that its 50-day moving average is above 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 below its five-day moving average, thereby offering a near-term ‘buy on the dip’ opportunity, given the longer-term uptrend 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. To get access to all ETF Database premium content, sign up for a free 14-day trial to ETF Database Pro. 102 ETFs made it to the buy on the dip prospects list. US market indices closed higher following the release of retail sales data and as the Federal Reserve lowered interest rates for the first time in over four years. Direxion Daily MSCI Real Estate Bull 3X Shares (DRN B+) topped the buy on the dip list with ~85% annual returns on higher supply of properties and lower home sales in August. However, the last interest rate cut should lead to lower mortgage borrowing costs. iShares U.S. Home Construction ETF (ITB A) and Real Estate Select Sector SPDR Fund (XLRE B+) were also on the list. Several gold ETFs such as Direxion Daily Junior Gold Miners Index Bull 3X Shares (JNUG B-) and Direxion Daily Gold Miners Bull 2X Shares (NUGT B-) featured on the buy on the dip list as gold prices declined following a stronger-than-anticipated U.S. jobs report. This positive economic data dampened hopes for significant interest rate cut by the Federal Reserve in November, strengthening the U.S. dollar and consequently weighing on gold prices. Compare and contrast the two ETFs using our ETF Comparison tool._ Many banking ETFs like Direxion Daily Regional Banks Bull 3X Share (DPST A), SPDR S&P Bank ETF (KBE A), and SPDR S&P Regional Banking ETF (KRE A-) also made it to the buy on the dip list as the U.S. bank stocks continued to decline, following warnings from top executives about a slower-than-expected rebound in investment banking and the anticipated negative impact of interest rate cuts on interest income. Many small-cap funds such as iShares Core S&P Small-Cap ETF (IJR A-) and SPDR Portfolio Small Cap ETF (SPSM A-) were buy on the dip candidates as investor enthusiasm for small-cap stocks has declined somewhat following a surge in popularity this summer. Economic uncertainty could also impact small-cap companies, given their generally higher debt levels and weaker earnings versus larger corporations. Several bond funds like Vanguard Long-Term Government Bond ETF (VGLT A-), iShares 20 plus Year Treasury Bond ETF (TLT B-), and many more made it to the list as yields on existing bonds have declined following reduction in interest rates by the Federal Reserve. To compare this month’s list with the one published September 18th, click here.ETFs to Buy on the DipPlease 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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