PowerRatings and Data-Driven Trading: Top Rated Stocks and ETFs Rally into Strength

Thursday’s rally marked another big day for short term traders using PowerRatings to help them find the best stocks – and exchange-traded funds – to trade everyday.

Stocks like ^SPRT^ earned PowerRatings upgrades to 10 and were up by more than 5% by Thursday’s close. Up more than 6% after earning a PowerRatings upgrade to 10 earlier this week were shares of ^ACAT^ (below)

ACAT Chart

Earning a PowerRating of 9 helped bring attention to the pullback in ACAT. And by the time the stock earned an upgrade to 10 one day later, ACAT proved to be an irresistable target for traders who buy weakness and sell strength.

Even more impressive were the gains in stocks like ^HNR^ and ^RVI^. Both stocks earned PowerRatings upgrades to 10 as the broad-based pullback deepened this week, only to reverse on Thursday to close higher by more than 10% in both instances.

The gains were not just limited to top PowerRatings stocks, either. Whether it was the quick gain of more than 2% in the ^IWM^ or the ^FXI^, or the even more impressive gains in leveraged exchange-traded funds like the ^SSO^, which closed higher by more than 3% after earning a PowerRatings upgrade to 10 or the rally of well over 6% in the ^TNA^, top PowerRatings exchange-traded funds soared into strength in the second half of the week, providing timely and profitable exits for the traders who trade them.

The ^EWJ^ (below) – up more than 4% after earning an upgrade to 9 earlier this week.

EWJ Chart

The PowerRatings upgrade to 8 in the EWJ was a hint that further PowerRatings upgrades might be right around the corner.

The ^ERX^ (below) – up more than 7% just days after a PowerRatings upgrade to 9.

ERX Chart

Note how a series of extremely low PowerRatings – ratings of “1” for example – helped anticipate a major pullback in this leveraged ETF. Within days, ERX had gone from our lowest PowerRatings to near our highest.

Many traders know instinctively – or have learned through resources like TradingMarkets – that the secret to success as a short term trader lies in buying weakness and selling strength. PowerRatings provides the key information traders need in order to know when to step in and buy that weakness and when to wait for markets to pullback even further. By keeping their powder dry until stocks and ETFs earn top PowerRatings upgrades to 9 or 10, short term traders have the ability to trade with powerful historical edges on their side – all objective, all quantified, all based on backtesting and data, not conventional wisdom or someone else’s opinion.

If you are looking to take your short term trading in exchange-traded funds and stocks to the next level, then why not give yourself the gift of PowerRatings this holiday season. Free, one-week trials are available now for stocks, ETFs and leveraged ETF PowerRatings. Click here to start trading with PowerRatings today!

David Penn is Editor in Chief at TradingMarkets.com.