PowerRatings Europe: Short Term ETF Trading Strategies for Germany, France, Sweden
If you know anything about high probability ETF trading, then you know that when it comes to trading exchange-traded funds, country funds are at the top of our list.
The latest pullback in the markets has created a number of deep pullbacks — and top ETF PowerRatings — in a number of country ETFs around the world. And insofar as our highest ETF PowerRatings funds have made significant short term gains nearly 80% of the time since 2003, these country ETFs are a potential source of high probability trades that traders should be aware of.
First up is the iShares MSCI Germany Index Fund ETF
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PowerRating) (below).
The iShares MSCI Germany Index Fund ETF had closed lower for the past five days in a row before bouncing on Wednesday. Even with that bounce, the EWG still maintains its ETF PowerRating of 9, having closed in oversold territory above the 200-day moving average for the past three consecutive days.
A few miles to the west and south is Germany’s neighbor France, which also has an exchange-traded fund that has earned a high ETF PowerRating going into trading on Thursday.
The iShares MSCI France Index Fund ETF
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PowerRating) (above) had closed down for four consecutive trading days before moving higher modestly on Wednesday. This pullback helped lower EWQ’s 2-period RSI from just short of 70 to less than 6. Going into trading on Thursday, EWQ has an ETF PowerRating of 9.
Lastly, is the iShares MSCI Sweden Index Fund ETF
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PowerRating). The EWD closed down for three out of the past four days before rallying somewhat on Wednesday. The rally notwithstanding, EWD still has an ETF PowerRating of 9 and three consecutive closes in oversold territory before Wednesday, when the fund closed in neutral territory. (below).
With the markets moving higher early in trading on Thursday, traders may want to focus on these higher ETF PowerRatings funds that may still be oversold enough to encourage buyers to continue entering these markets.
Isn’t it time you gave PowerRatings a try? Our top-rated ETFs have been correct nearly 80% of the time since 2003. Click here to launch your free, 7-day trial to our ETF PowerRatings today!
David Penn is Editor in Chief at TradingMarkets.com.