5 PowerRatings ETFs for the Next 5 Days: EFZ, SDP, EWV, EFU, SDK
Both the S&P 500 and Dow industrials slid by more than 1% on Thursday as profit-taking in the financials put at least a temporary pause in the market’s March rally.
Has the profit-taking we have been expecting begun? Friday’s trading should be interesting insofar as Friday is an options expiration day and volatility is likely to be higher than usual. However, for PowerRatings traders, our approach to Friday will be the same as our approach to any other trading day: keeping an sharp eye on the edges — in the form of high Short Term PowerRatings stocks and exchange-traded funds.
After all, these are the stocks and ETFs that, according to our research going back to 1995, are likely to outperform the average stock or ETF in the short term.Â
With traders appearing ready to take some of their chips to the cash-out window, it may be a particularly appropriate time for short term traders to survey the remaining high Short Term PowerRating ETFs – all of which at this point are short or inverse ETFs — for those that are the most oversold, the most unloved. These are the ETFs that are most likely to respond powerfully when profit-taking begins in earnest and those who were clever or merely fortunate enough to be long in the first half of March start taking their winnings off the table.
Below is a list of the 5 most oversold short ETFs, using the 2-period RSI as our gauge. For traders looking to take advantage of a potential move lower in stocks, these high Short Term PowerRatings ETFs should be high on the list for consideration.
ProShares UltraShort Utilities ETF
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SDP |
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PowerRating) Short Term PowerRating 9. RSI(2): 0.520
ProShares Short MSCI EAFE ETF
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EFZ |
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PowerRating) Short Term PowerRating 9. RSI(2): 0.561
ProShares UltraShort MSCI Japan ETF
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EWV |
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PowerRating) Short Term PowerRating 9. RSI(2): 1.29
ProShares UltraShort MSCI EAFE ETF
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EFU |
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PowerRating) Short Term PowerRating 9. RSI(2): 2.82
ProShares UltraShort Russell 2000 Midcap Growth ETF
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SDK |
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PowerRating) Short Term PowerRating 8. RSI(2): 5.66
Did you know that our Short Term PowerRatings work for exchange-traded funds too? If you’ve been looking for help in trading ETFs in both bull and bear markets, then our Short Term PowerRatings may provide the solution you are looking for. Click here to start your free, 7-day trial today!