Inverse Financial ETF FAZ Oversold as Traders Wait for News
Financial stocks are highly correlated to changes in interest rates and Federal Reserve Chair Janet Yellen’s Congressional testimony will bring attention to interest rates today. Yellen may or may not say anything of substance but traders and analysts will attempt to find meaning in her words. Market volatility is likely to increase based on speculation […]
Precious Metals Rebound Points to Buying Opportunity in Inverse Silver Fund
Gold and silver moved higher on Friday after the unemployment report disappointed many traders. If the economy remains weak, the Federal Reserve may be forced to continue easing, leading to inflationary pressures that might benefit the precious metals. Friday’s gains capped an especially solid week for iShares Silver Trust (NYSE: SLV) which gained 4.44% last […]
Small Caps Still on a Buy Signal
Yesterday we highlighted a trading opportunity in Direxion Daily Small Cap Bull 3X Shares (NYSE: TNA) which then gained 2.52% for the day. Small caps should continue to lead the market higher if the pullback of the last two weeks has ended and TNA is still a buy with a PowerRatings of 9 heading into […]
Two Buy Setups in Small Cap and S&P 500 Leveraged ETFs
In How Markets Really Work, we demonstrated that buying new 21-day lows was a profitable trading strategy. While many traders buy new highs, we found that new 21-day highs were often followed by pullbacks or below average gains. Buying new 21-day lows consistently provided better than average gains. Direxion Daily Small Cap Bull 3X Shares […]
Broad Market Remains Oversold as Boeing Appears on Potential Buy List
Yesterday’s rally did little to change the condition of the broad stock market. Using the portfolio feature at the PowerRatings web site, we can see that ETFs tracking all major stock market indexes except PowerShares QQQ (NASDAQ: QQQ) remain oversold. Among individual stocks, Boeing (NYSE: BA) stands out as oversold. BA has a PowerRatings of […]
Oversold Stock Market Offers ETF Buying Opportunities, Few Stock Trading Candidates
At the close yesterday, 115 ETFs were oversold while only twelve stocks in the S&P 500 index were oversold. Thirty leveraged ETFs were also oversold with a PowerRatings of 8 or higher. Using the PowerRatings web site, traders can create portfolios to spot trends in the market. Shown below is a portfolio of ETFs that […]
How to Start Trading Options Quantitatively
Gain a solid foundation on the fundamentals of options and learn just what they are, the two types of options, the pricing of options, and some basic trading strategies.
Learn How to Professionally Trade Options with Larry Connors
At the upcoming Quantified Options Trading Strategies Summit 2014 Larry Connors and the Connors Research team will be teaching a comprehensive program of options trading strategies. You’ll learn how to identify and trade high probability options setups in 4 distinct sections: Quantified Strategies to Buy and Sell SPY Options and Other Liquid ETF Options Applying […]
A Dozen ETFs With Exposure to Europe Start the Week Oversold
European inflation came in lower than expected on Friday triggering a selloff in the Euro and European stock markets. Traders are concerned that low inflation threatens the fragile economic recovery. In the past, European Central Bank President Mario Draghi has promised to do whatever is necessary to defend the Euro. Traders will be watching closely […]
Retail Sector Selloff Could Be Nearing an End
Yesterday, electronics retailer hhgregg, Inc. (NYSE: HGG) announced fourth quarter results that disappointed investors and the stock fell 19.32%. Competitor Best Buy (NYSE: BBY) also sold off and fell 5.21%. HHG and BBY are now both oversold with PowerRatings of 8. PowerRatings are based on the relative strength or weakness of particular stocks or ETFs. The […]
Scale-In Strategy Could Benefit From Market Weakness
ETFs tracking all major stock market averages except PowerShares QQQ (NASDAQ: QQQ) are oversold with PowerRatings of 9 or 10. Oversold markets can become more oversold and there is no way to tell when a selloff will end. In markets like this, a scale-in strategy as explained in the Connors Research Guidebook ETF Scale-In Strategy, […]
Stock Market Still Oversold Despite One-Day Rally
Major stock market averages rallied yesterday but ended the day oversold according to PowerRatings. SPDR Dow Jones Industrial Average (NYSE: DIA) gained 0.58% yesterday and ProShares UltraPro Dow30 (NYSE: UDOW) was up 1.54%. Both start trading today with a PowerRatings of 9. SPDR S&P 500 (NYSE: SPY) was up 0.60% but is still oversold with […]