Buying Brazil, Britain and the SPY: ETF PowerRatings for Short Term Traders
As U.S. markets begin trading on Friday, our database has revealed more than 70 exchange-traded funds (ETFs) with top ETF PowerRatings of 10.
Remember that our research, going back to 2003, indicates that exchange-traded funds with ETF PowerRatings of 10 have made significant short term gains nearly 80% of the time. Combine this data with the reality of a very, very oversold market for ETFs and you have the potential for major short term trading opportunities for high probability traders.
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Some of the higher rated ETFs for Friday include country ETFs like the ^EWU^ (below), which tracks the biggest stocks from markets in Great Britain.
EWU broke down to new short and intermediate term lows on Thursday, retreating back to oversold territory above the 200-day moving average after bouncing into neutral territory for the three days before. EWU has a 2-period RSI of less than 18.
Our top ETF PowerRatings also includes equity index ETFs like the ^SPY^ (below).
The SPY is a favorite trading vehicle for traders of all types and high probability ETF PowerRatings traders are no different. Going into trading on Friday, the SPY has just moved deeper into oversold territory after making new lows on Thursday, bringing the fund’s 2-period RSI below 18.
Which top 10 rated exchange-traded funds are the most oversold right now? Outside of a bond fund, the ^DBB^, a commodity-based ETF with a 2-period RSI of less than 0.5(!), you won’t find sellers any more aggressive in an ETF than they have been in the ^EWZ^.
Another favorite among traders, EWZ (above) has a 2-period RSI of approximately 1.0 and has closed lower for six out of the past seven days leading into Friday’s trading. Unlike the ^FXI^ another popular ETF among country fund traders, the EWZ has managed to remain above its 200-day moving average and remains a viable candidate for high probability ETF trades as long as it continues to do so.
Isn’t it time you gave ETF PowerRatings a try? Our top-rated ETFs have been correct nearly 80% of the time since 2003. Click here to launch your free, 7-day trial to our ETF PowerRatings today!
David Penn is Editor in Chief at TradingMarkets.com.