Exchange traded funds that invest in India, energy stocks and silver are among the most overbought ETFs in the current rally, according to Bespoke Investment Group.
The firm tracks ETFs that are trading at the highest percentage above their 50-day moving averages. For example, iPath MSCI India (NYSEArca: INP), PowerShares Dynamic Energy Exploration & Production (NYSeArca: PXE) and PowerShares DB Silver Fund (NYSEArca: DBS) top the list and are more than 12% from the 50-day moving average.
“Of the 200 or so ETFs across all asset classes that we track … 94% are currently trading above their 50-day moving averages,” Bespoke notes.
Nearly all the ETFs on the top list track commodities or foreign stocks, it added.
Most Overbought ETFs