5 PowerRatings ETFs for the Next 5 Days: TWM, SKF, SH, QID, REW
When markets are trading below their 200-day moving averages, their rallies are to be sold rather than bought. That is the way that swing traders look at what are often called bear market rallies.
The growing sense of optimism in the voices of the financial media is hard to miss. The coincidence of President-elect Barack Obama’s holding a series of press conferences during the current rally has encouraged more than a few observers to joke that if he could just continue unveiling his cabinet for another year or so, that might be all the stimulus the markets need.
Our Short Term PowerRatings suggest something a little less miraculous. After a stretch of time with very few if any overbought stocks with Short Term PowerRatings of 1, the recent buying pressure in the market has resulted in more than 100 such overbought stocks.
Additionally, the ranks of our Top 25 PowerRatings Stocks are filled with not only short and inverse funds, but also short and inverse funds with Short Term PowerRatings of 9. 9-rated stocks — and ETFs — merit particularly attention from short term stock and ETF traders looking to buy otherwise strong names on weakness.
Five of those ETFs are listed below — along with their 2-period RSIs.
This suggests that the market is very much vulnerable to a short term pullback. Whether or not you believe that stocks have bottomed, the near-term picture appears to be one in which traders with upside exposure should be extra careful.
ProShares UltraShort Russell 2000
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TWM |
Quote |
Chart |
News |
PowerRating) Short Term PowerRating 9. RSI(2): 7.55
ProShares UltraShort Financials
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SKF |
Quote |
Chart |
News |
PowerRating) Short Term PowerRating 9. RSI(2): 8.43
ProShares Short S&P 500
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SH |
Quote |
Chart |
News |
PowerRating) Short Term PowerRating 9. RSI(2): 9.23
ProShares UltraShort QQQ
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QID |
Quote |
Chart |
News |
PowerRating) Short Term PowerRating 9. RSI(2): 10.03
ProShares UltraShort Technology
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REW |
Quote |
Chart |
News |
PowerRating) Short Term PowerRating 8. RSI(2): 13.18
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David Penn is Editor in Chief at TradingMarkets.com.