For traders using PowerRatings to find the best ETFs to trade every day, the recent pullback in the markets has been another great opportunity to put the PowerRatings edge to work.
Even conservative traders can take advantage of the historical edges in exchange-traded funds that PowerRatings reveal. Consider for example a conservative trader who only bought the highest rated exchange-traded funds, the ETFs that earned our highest PowerRatings of 10.
In the technology sector alone, conservative traders using PowerRatings had the opportunity to buy exchange-traded funds like the ^SMH^ (below), almost a week before the fund rallied to new short term highs.
Traders who used the ^XLK^ as their proxy for the technology sector that had gone on sale over a week ago were also rewarded – even if they remained conservative and only bought the XLK when it earned the highest possible rating of 10.
When trading size is adjusted appropriately, even conservative traders can take advantage of leveraged exchange-traded funds. And especially when those leveraged ETFs are earning top PowerRatings. Again, an example of a conservative approach that only looks to buy “top 10” funds.
The potential in technology stocks is no mystery to any trader or investor. From ^VZ^ and ^ORCL^ to ^AAPL^ and ^MSFT^, these are the stocks that traders and investors are buying and selling every day. And by using technology exchange-traded funds, short term traders can get exposure to all of these stocks at once whenever they want: buying them as they move lower and selling them as they rally back into strength.
And there’s no easier way to know which tech funds to buy – and which to sell – than with PowerRatings. Click here for a free, 7-day trial and see what PowerRatings can do for you and your ETF trading.
David Penn is Editor in Chief of TradingMarkets.com