Leveraged Funds Flashing Buy Signals

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 these trades 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.

Leveraged ETFs with exposure to developing markets and the Dow Jones Industrial Average are oversold with PowerRatings of 10 and could be potential buys on additional weakness.

Direxion Daily Dev Markets Bull 3X Shares (NYSE: DZK) has fallen to a support level on the chart and could be a buy under $64.06.


ProShares UltraPro Dow30 (NYSE: UDOW) also has a PowerRating of 10 and could be a buy under $96.66.


Both of these ETFs are also buys based on multiple down days, ConnorsRSI and the 2-period RSI. With several simultaneous buy setups, traders should be looking for opportunities on the long side in DZK and UDOW.

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All data is as of the end of day on 12/4/2013.