Five ETFs to Sell Into Strength

With about 90 minutes to go in Wednesday's trading, it would appear the market will be able to notch to consecutive up days. No small feat in this environment, but the reality is the problems that have been forcing the market lower are still around and they will not be solved overnight. Translation: Enjoy what is most likely an oversold bounce. For those fortunate enough to catch some of the bounce from the long side, taking some profits is probably a swell idea right now. And if this little rally has helped some of your losers shrink, that should be good enough and take a look at getting out before those losses grow again. To help you get started, here are five ETFs you should consider selling into strength. Vanguard MSCI Europe Index ETF VGK: It may not sound like much, but the Vanguard MSCI Europe Index ETF has bounced from around $38 to almost $41 in just two days. It's probably not going to get much better than because Europe's sovereign debt woes didn't just disappear into thin air. As long as that problem exists, VGK is nothing more than a short-term trade. SPDR S&P Oil & Gas Exploration & Production ETF XOP: Look, this is an ETF we want to like and if you're in it for the long haul (six months, 12 months or longer), there's no need to jump ship quite yet. On the other hand, if you got in around $40, take the almost 10% XOP has given you and get out if you're not committed to XOP as anything more than a swing trade. iShares MSCI France Index Fund EWQ: Yes, we're going to call a gain of roughly $1.20 in two days strength for anything associated with the Euro zone. This is one ETF not to be piggish with due to substantial headline risk on a daily basis. iShares S&P Global Materials ETF MXI: Look at the iShares S&P Global Materials ETF through the same lens as you would XOP: There are a lot of good stocks in this ETF. Well, good stocks in the right market environment. So long term investors can stick with MXI waiting for the risk on trade to come back on. Short-term players should take the almost 10% MXI has given you in two days and run. Direxion Daily Emerging Markets Bull 3X Shares EDC: Not that anyone should be turning EDC into a long-term investment, but the ETF is up about $3 in the past two days. Asking for much from a long emerging markets trade in this environment is just being too greedy.