ETF PowerRatings: Strategies for Trading Biotech, Emerging Markets, Energies
With Asian markets beginning to pullback late in the week, the chances that high probability ETF traders will be able to take advantage of lower prices in a variety of high ETF PowerRatings are improving.
Right now, the highest rated ETF PowerRatings funds are spread across a couple of different sectors, with exchange-traded funds representing markets in biotechnology, emerging markets and energy being the most prominent.
Recall that the highest rated ETF PowerRatings funds â€” those that have earned ETF PowerRatings of 10 â€” have made significant gains in the short term nearly 80% of the time. All three of the ETFs in todayâ€™s report have ETF PowerRatings of at least seven â€” putting them in that category of exchange-traded fund which, according to our research going back to 2003, have produced positive short term gains more than 70% of the time.
TUR has closed for the past two days in oversold territory above the 200-day moving average. With an ETF PowerRating of 8, TUR belongs to that cohort of funds which have historically made short term gains more than 77% of the time according to our research.
We also have two, 7-rated ETFs going into Thursday. The First Trust ISE-Revere Natural Gas Index ETF
PowerRating) (below) has closed lower for five out of the past six trading days and has earned an ETF PowerRating of 7.
Traders should note that FCG, unlike the United States Natural Gas Fund ETF
PowerRating) actually tracks the share prices of natural gas companies, not the price of natural gas itself.
Lastly, profit-taking in the biotechnology sector has created a pullback â€” and an ETF PowerRating upgrade â€” for the iShares Nasdaq Biotechnology Index Fund ETF
IBB has been moving largely sideways over the past week. But recent selling has helped tip the exchange-traded funds toward oversold territory above the 200-day moving average. IBB was overbought as recently as Monday.
Find out more about what ETF PowerRatings can do for you and your trading. Click here to launch your free, 7-day trial to our ETF PowerRatings today.
David Penn is Editor in Chief at TradingMarkets.com.