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Most Sector ETFs Fall to Oversold After Market Selloff

SPDR S&P 500 (NYSE: SPY) fell 1.11% yesterday with 80% of all the volume on the New York Exchange being to the downside. Heavy downside volume of 80% or more is often a sign that the market has become oversold in the short term. Another sign that a short-term reversal could be near is when […]

Inverse Brazil, Inverse Mexico and U.S. Tech ETFs Top Potential Buy List

Emerging markets were among last week’s winners. ETFs tracking stock market indexes in Mexico and Brazil each gained more than 2% last week. Leveraged inverse funds with exposure to these markets became oversold as the stock markets rose. ProShares UltraShort MSCI Brazil (NYSE: BZQ) and ProShares UltraShort MSCI Mexico (NYSE: SMK) both ended the week […]

Unemployment Reports, Volatility and Potential PowerRatings Buys

Every month, the unemployment report has the potential to move markets. Some studies have found that the trading range of broad market indexes is three times greater than average on the day after the report. Unemployment has taken on greater significance since the Federal Reserve pegged low interest rates and easy money to the unemployment […]

Bear Funds Provide Buying Opportunities in Bull Markets

Many traders avoid short positions. The reasons for this might include the high costs associated with short trades since traders have to pay their broker a variable interest rate on short positions. Traders may not like the theoretically unlimited risk a short position carries. Legal restrictions on some retirement accounts and investment policy restrictions on […]

Direxion Energy Bear 3x Shares Demonstrate Potential of PowerRatings

Direxion Energy Bear 3x Shares (NYSE: ERY) ended yesterday oversold with a PowerRatings of 9.  Since the beginning of the year, PowerRatings have identified a number of bullish and bearish turning points in this ETF. ERY shows how PowerRatings can be helpful for short-term traders. PowerRatings is a stock rating system that ranks stocks on […]

Upside Follow Through Possible in Stock Market

SPDR S&P 500 (NYSE: SPY) gained 0.82% yesterday as stocks rallied. Most stocks ended the day higher with 74% of New York Stock Exchange listed securities closing up. On the NASDAQ, 78% of the volume was to the up side. Overseas markets also rallied. At the end of the day, four of the ten most […]

Window-Dress Prices Higher

Most of the world markets are in neutral to overbought territory. With today being the last day of the quarter I’m sure they’ll do their best to window-dress prices higher. Another day or two  of rallying will likely be followed by a pullback, especially in overbought Country Fund ETFs trading below their 200 day ma.

PowerRatings Offers Insights into Market Sentiment

Market sentiment indicators usually rely on polls to determine if investors consider themselves to be bulls or bears. That approach offers useful information but the division between bulls and bears doesn’t tell us what traders actually want to do with their money. The PowerRatings web site offers a list of the most requested stocks. This screen […]

7 Stocks to Watch Friday

Prices of individual stocks tend to move in the same direction as the broad market. Yesterday was a lackluster day in the stock market with SPDR S&P 500 (NYSE: SPY) ending the day down 0.21%. About half (52%) of the stocks on the New York Stock Exchange closed the day higher while 45% were down […]

Small Caps Oversold on Seven High Probability Trading Strategies

This week’s stock market selloff has been following a pattern indicating the pullback is most likely a dip in the long-term uptrend. In an orderly market, small caps lead the way higher or lower followed by mid caps and then large caps. After yesterday’s decline, ETFs that track small caps and mid cap indexes are […]

Market Condition Little Changed After Yesterday’s Gains

Stock market averages posted small gains in yesterday’s trading but there were no significant breakouts or breakdowns among ETFs that track the major averages. For the most part, the highest volume ETFs ended the day with the same PowerRatings they had at the open. Gold miners, small cap stocks and the health care sector remain […]

ETF Buy List Grows as Stock Market Declines

Major stock market indexes were down slightly yesterday. Among the day’s biggest losers were small caps, especially biotechs and other tech stocks. iShares Russell 2000 (NYSE: IWM) fell 1.14% and PowerShares QQQ (NASDAQ: QQQ) was down 0.88%. The decline pushed a number of ETFs into an oversold condition and heading into Tuesday’s trading, twelve ETFs […]