Four Sector ETFs Starting the Week Oversold
At the PowerRatings web site, users can set up customized portfolios that allow them to gain unique market insights. A portfolio could include stocks on a trading watch list or a group of ETFs that provide a broad overview of the market. The portfolio below includes thirteen high-volume SPDR sector funds.
SPDR S&P Retail ETF (NYSE: XRT) and Consumer Staples Select Sector SPDR (NYSE: XLP) will start trading on Monday with PowerRatings of 10. SPDR S&P Homebuilders ETF (NYSE: XHB) and Consumer Discretionary Select Sector SPDR (NYSE: XLY) are also on buy signals. No sectors are oversold.
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.
In the past, buying stocks with a rating of 10 on a 3% pullback the next day and selling five days later has been profitable 75% of the time. The average winner has gained 5.9%. 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 1/17/2014.