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Buy on the Dip Prospects: December 18 Edition

BY | ETF Database
12/18/2024 | 518 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. 95 ETFs made it to the buy on the dip prospects list. US market indices’ performance was mixed as investors braced for inflation data, which would influence the Fed’s rate decision next week. T-Rex 2X Long NVIDIA Daily Target ETF (NVDX C+) and GraniteShares 2x Long NVDA Daily ETF (NVDL ) topped the list of buy on the dip prospects. Nvidia shares entered correction territory in December despite the broader tech boom. ProShares UltraPro Dow30 (UDOW A), Direxion Daily Small Cap Bull 3X Shares (TNA B-), iShares Russell Mid-Cap Growth ETF (IWP A-), and iShares Russell 2000 ETF (IWM A-) ranked among the buy on the dip contenders as economic data, including higher-than-expected producer prices and disappointing jobless claims, dampened market sentiment, following a persistent inflation report and rising bond yields last month. Several precious metals’ ETFs such as ProShares Ultra Silver (AGQ A-), Perth Mint Physical Gold ETF (AAAU ), iShares Gold Trust (IAU A-), and more featured on the buy on the dip list. Last week’s mixed U.S. economic data could lead to a Fed rate cut in December, but higher inflation also cast a doubt on further cuts in 2025. Bullion markets initially reacted negatively, but geopolitical tensions and Chinese stimulus hopes are providing some support. Several bond funds like iShares 1-3 Year Treasury Bond ETF (SHY A-), Schwab 5-10 Year Corporate Bond ETF (SCHI B+), and Schwab Short-Term U.S. Treasury ETF (SCHO A) ranked among the buy on the dip prospects as yields on both US 3-year and 10-year Treasury Notes increased in the later part of the last month. Long-term yields surged post-election due to concerns over potential inflation and increased government debt. Check out our Bond ETFs list here. To compare this month’s list with the one published November 27th, 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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