3 Beaten-Down ETFs That Could Rebound In 2014

Posted by Bigtrends on December 31, 2013 8:42 AM

3 Beaten-Down ETFs That Could Rebound In 2014
Time to buy out of favor ETF's for 2014?

The best time to buy cheap is when you are afraid to bring up your ideas around the water cooler at work for fear of the peer laughter.  Our work centers on looking for oversold conditions and crowd behavioral anomalies that can give us better low risk entries with good upside potential.  A combination of fundamentals and technical, combined with Elliott Wave Theory patterns, can lead to nice profits with low risk.

For just a few quick ideas that would make sense in this area, we point out 3 ETF's that you could look at entering now as they are way out of favor and very oversold.

Gold Stocks:

The Junior Miners index (GDXJ) is high risk, high reward.  However, if you time the entry right at the opportune moment the upside is very high with low downside risk.  With Gold (GLD) out of favor, we have been pounding the table the last 10 days or so that there are only 4-5 weeks left to buy quality miner names.  Instead of picking through them one at a time, you can pick up the high beta play GDJX ETF or Gold Miners ETF (GDX).

GDXJ Daily Chart
chart1 (1)

How about Brazil? 

Everyone hates Brazil stocks (EWZ) now, but they have some of the most valuable natural resources in the world, and Brazil almost always bounces back strong off bear cycle lows.   Here is a way to play the commodity rebound we see in 2014:  EWZ ETF.

EWZ Daily Chart
chart2

It's not too late to eat some Turkey:

The country Turkey (TUR) also often is a very volatile play to invest, but going in during very oversold conditions often plays out to the upside for gains later on.  ETF TUR is beat up, it's time to buy.

TUR Daily Chart
chrart3
 

Courtesy of David A. Banister, www.activetradingpartners.com

 

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