PowerRatings Trading Report: Oversold Gold and Top 5 Leveraged ETFs Update

One glance at our PowerRatings listings at the beginning of the week will show traders that there is no market more in play right now than the gold market.

Whether you are focused on the ^GLD^, the ^GDX^ (below) or any of the leveraged or inverse leveraged funds that track gold, gold mining companies and even precious metals in general, our PowerRatings offer a quantified guide to how to buy, sell or sell short these widely-traded markets.

GDX Chart


Earning a Leveraged ETF PowerRating of 10 on Monday, shares of UGL have already begun to move higher, earning a downgrade to 8 on Tuesday as the fund bounced from oversold lows.

ULG Chart

Now in neutral territory intraday on Wednesday, the UGL is still below its 5-day moving average. Note that the last time UGL earned a Leveraged ETF PowerRating of 10 was back in late May. After two days of top 10 ratings, UGL soared by more than 6%.


Also moving higher after retreating to oversold lows above the 200-day moving average are shares of DGP, which earned Leveraged ETF PowerRatings upgrade to 9 last Friday.

DPG Chart

The DB Gold Double Long ETN has continued to advance, earning a Leveraged ETF PowerRatings downgrade to 8 on Monday. Intraday on Tuesday, DGP has crossed above its 5-day moving average.

In addition to these gold funds rallying from high Leveraged ETF PowerRatings, there are other gold funds, inverse leveraged ETFs, for traders who would rather sell short than go long in the
current environment.

These low-rated ETFs include the ^DZZ^ and the ^GLL^. These inverse leveraged ETFs earned Leveraged PowerRatings of 2 and 1 respectively.

Top 5 Leveraged ETFs Update

Looking at the top 5 highest volume leveraged ETF roster for Wednesday, the highest rated fund continues to be the ^QID^, with a Leveraged ETF PowerRating of 7. Among
the more notable moves has been the four-point upgrade in the ^SSO^ over the past five days. SSO has climbed from a Leveraged ETF PowerRating of 1 to a Leveraged ETF
PowerRating of 6.

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David Penn is Editor in Chief at TradingMarkets.com.