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Buy on the Dip Prospects: December 24 Edition

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. 85 ETFs made it to the buy on the dip prospects list. The US market ended higher, driven by Fed rate cuts, soft inflation data, and robust corporate earnings. GraniteShares 2x Long AMDL Daily ETF (AMDL B) topped the buy on the dip list. AMD’s stock dropped in the last month, fueled by investor anxiety over higher interest rates, memory price hikes, and Google’s dominance in the AI sector. Direxion Daily GOOGL Bull 1.5X Shares (GGLL A) ranked second on the list. Alphabet shares fell last week, after reports of funding issues for a Michigan data center project sparked a wider decline across the large-cap AI sector. Direxion Daily Technology Bull 3X Shares (TECL B+) also made it to the list. Direxion Daily FTSE China Bull 3X Shares (YINN A+), iShares MSCI China ETF (MCHI A), and iShares China Large-Cap ETF (FXI A) also featured on the buy on the dip list. Chinese stocks softened as November data revealed that retail sales and industrial output failed to meet analyst projections. The downward pressure was compounded by a sharper-than-expected drop in fixed asset investment and falling home prices, signaling persistent distress in the property sector. Several bond funds like iShares 7-10 Year Treasury Bond ETF (IEF B-), iShares 3-7 Year Treasury Bond ETF (IEI B+), and SPDR Portfolio Intermediate Term Treasury ETF (SPTI B) made it to the list. The 10-year U.S. Treasury yield increased, mirroring a global surge in sovereign yields, fueled by market anticipation of more restrictive monetary policies from major international central banks. Energy-focused funds such as energy such as iShares U.S. Energy ETF (IYE A-), Fidelity MSCI Energy Index ETF (FENY A+), and Energy Select Sector SPDR Fund (XLE A) were buy on the dip contenders. Crude oil futures edged lower as the market weighed supply risks from escalating U.S.-Venezuela tensions against the bearish pressure of a global supply glut and the prospect of a diplomatic resolution to the Russia-Ukraine conflict. Check out our Oil & Gas ETFs’ list here To compare this month’s list with the one published December 3rd, 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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