Four ETFs Oversold While Market Stuck in Neutral

With a gain of 0.54% yesterday and a two-day gain of 1.63%, SPDR S&P 500 (NYSE: SPY) is now at breakeven for the year. Despite the large rally over the past two days, most stocks are ranked neutral by PowerRatings. Only one stock (Sprint (NYSE: S)) is oversold with a PowerRatings of 8 or higher. S has a PowerRatings of 9. Only nine of the 500 stocks are overbought with a PowerRatings of 3 or less.

PowerRatings are based on the relative strength or weakness of particular stocks or ETFs. The higher the rating, the greater the one week historical gain has been for stocks and ETFs with that rating. For best results, enter trades on stocks with a PowerRatings of 8 or higher with a limit order 3-7% below the previous day’s closing price. Higher % limit entries have historically shown a greater percentage of winning trades but higher % limit orders also reduce the chance of trade execution.

There are four ETFs on PowerRatings buy signals.


In the past, buying stocks or ETFs with a rating of 9 on a 3% pullback the next day and selling five days later has been profitable 75% of the time. The average winner has gained 4.3%. Other entries and exits also show high winning percentages and large average gains.

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All data is as of the end of day on 1/15/2014.