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Buy on the Dip Prospects: September 18 Edition

BY | ETF Database
09/18/2024 | 198 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. 47 ETFs made it to the buy on the dip prospects list. US market indices remained flat on a month-on-month basis driven by slowdown fears, soft payroll data, and expectations of aggressive rate cuts by the Federal Reserve. T-Rex 2X Long NVIDIA Daily Target ETF (NVDX C+), GraniteShares 2x Long NVDA Daily ETF (NVDL ), and Direxion Daily NVDA Bull 1.5X Shares (NVDU B+) topped the list of buy on the dip prospects as the Department of Justice investigates Nvidia for potential antitrust violations. VanEck Vectors Semiconductor ETF (SMH A-) and iShares PHLX Semiconductor ETF (SOXX A-) also featured on the buy on the dip list as global semiconductor and related stocks declined, mirroring a dramatic drop in Nvidia’s share price. Many banking funds like Direxion Daily Regional Banks Bull 3X Shares (DPST A), SPDR S&P Bank ETF (KBE A), Financial Select Sector SPDR Fund (XLF A), and SPDR S&P Regional Banking ETF (KRE A-) were candidates on the buy on the dip list as U.S. bank stocks declined following a downturn triggered by forecasts of a delayed recovery in investment banking and the anticipated impact of interest rate cuts on earnings. Several emerging market ETFs SPDR Portfolio Emerging Markets ETF (SPEM A-), iShares Core MSCI Emerging Markets ETF (IEMG A), and Vanguard FTSE Emerging Markets ETF (VWO A+) were buy on the dip candidates over slowdown fears and aggressive rate cuts in the US. Several short term bond funds like PGIM Ultra Short Bond ETF (PULS A) and PIMCO Enhanced Short Maturity ETF (MINT A-) featured on the buy on the dip list on the occurrence of an inverted yield curve (where short-term rates are higher than long-term rates) in scenario of the upcoming rate cuts, signaling the possibilities of the US going into a recession. Explore our Bond ETF list here To compare this month’s list with the one published September 4th, 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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