Back to the Pullback: ETF PowerRatings Strategies for Gold and Emerging Markets

Volatility was the name of the game on the open this morning as pre-market futures had strongly suggested that the pullback we got on Tuesday and lost on Wednesday may be back.

This means, among other things, that high probability ETF traders who put their watch lists of top ETF PowerRatings stocks on the shelf yesterday will need to pull that list out and begin seeing which funds that looked like potential short term trading candidates a few days ago are once again moving back into oversold territory.

Click here to try our ETF PowerRatings free for a week.

What were some of those exchange-traded funds? Going into trading today on Thursday, our top ETF PowerRatings roster included 10-rated ETFs like the ^TUR^ and 9-rated funds like the ^ILF^ (below).

ILF Chart

Our TradingMarkets Most Overbought and Oversold ETFs for today also highlighted a few ETFs that have closed in oversold territory ahead of today’s trading. Especially noteworthy about this group of exchange-traded funds is the presence of a significant number of precious metals and gold ETFs – from the ^IAU^ to the ^DGP^ (below).

DGP Chart

Both ILF and DGP enter trading on Thursday with ETF PowerRatings of 9.

Most people have a favorite time of the year. High probability traders, on the other hand, have a favorite time of the month – particularly when markets are selling off. As I noted in a column several weeks ago, Connors Research has shown some very interesting market tendencies when the end of the month draws near.

This research, published in Larry Connors’ book, Short Term Trading Strategies That Work: A Quantified Guide to Trading Stocks and ETFs, points out that when markets sell off toward the end of the month, they have a tendency to rally in the short term. If you missed my column talking about this End of the Month Strategy, please click here to read: “Short Term Trading Strategies That Work: SPY, SSO and the End of the Month”.

And if you don’t already own a copy of Larry’s book, Short Term Trading Strategies That Work, click here to order a copy at the new discounted, softcover price.

David Penn is Editor in Chief at