End of week strength in the ETF market allowed for further opportunities for high probability ETF traders in general – and ETF PowerRatings traders in particular – to lock in gains in a number of top rated exchange-traded funds (ETFs).
Remember that our highest rated ETFs, those with ETF PowerRatings of 10, have made significant short term gains nearly 80% of the time going back to 2003. This is based on our extensive testing in a wide variety of exchange-traded funds, and involved thousands of simulated trades. Even ETFs that earned ETF PowerRatings of 8 or 9 made similarly significant gains more than 75% of the time in our research.
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Let’s take a look at some of those exchange-traded funds that ETF PowerRatings traders were able to sell into strength in the last few days of last week.
First up is the ^TUR^. TUR earned an ETF PowerRating of 10 on Friday, February 5th.
Shares of TUR plunged at the beginning of February, closing lower for three days in a row en route to a top ETF PowerRating. However, shortly after earning its 10 rating, TUR’s downward momentum slowed and, soon enough, the fund was advancing back above its 5-day moving average and into overbought territory where traders were able to take profits of well over 2%.
Another big move in a 10-rated fund was seen in the ^ECH^.
ECH had been falling for some time. The ETF pulled back dramatically in the second half of January, bounced at month’s end, and then pulled back some more in the early days of February.
After a sharp two-day drop helped ECH earn an ETF PowerRating of 10, it appears as if sellers had met their match. Buyers returned to the market for ECH, lifting the fund back into overbought territory where profit-taking helped traders lock in gains of more than 3.5% by last Friday.
The last fund in today’s report also had an ETf PowerRating of 10: the ^EWY^.
Shares of EWY actually earned an ETF PowerRating of 10 on both the 4th and 5th of February. This signified an exceptionally oversold condition for this ETF and the potential for a sizable move higher after the pullback had run its course.
This was very much the case when EWY, over the next four days, crossing its 5-day moving average and closing in overbought territory for a gain of more than 4%.
Note that all of the funds in today’s report are ETF country funds. When it comes to high probability ETF trading, as we have noted frequently in the past, country ETFs are among the best ETFs for short term high probability traders to trade. For more on why this is true, click here to read: Think Local, Trade Global: ETF Trading Strategies for the Far East and Africa.
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.