Gold Joins Silver as a Potential Trading Opportunity

Heading into Friday’s trading, ProShares UltraShort Silver (NYSE: ZSL) was a potential buy candidate with a PowerRatings of 8 and a ConnorsRSI reading of 17.19. Intraday, ZSL continued to display weakness and the trade could have been entered near the day’s low after a 3% pullback.

ZSL continues to be a potential buy and additional weakness could provide a second chance to enter long trades or an opportunity to add to existing positions. Heading into Monday’s trading ZSL has a PowerRatings of 9 and a ConnorsRSI of 13.43.


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 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.

Traders in the precious metals market might also want to consider ProShares UltraShort Gold (NYSE: GLL). This ETF is also oversold and will start trading Monday with a PowerRatings of 8.


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All data is as of the end of day on 12/27/2013.