Solar ETF Moving Towards Oversold Buying Level
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In the past, buying stocks with a rating of 8 on a 3% pullback the next day and selling five days later has been profitable 71% of the time. The average winner has gained 3.1%. Other entries and exits also show high winning percentages and large average gains.
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Guggenheim Solar (NYSE: TAN) has gained more than 150% since the beginning of the year. This ETF actually has a long history of volatility. Data available at TradingMarkets Live Screener, a service available from TradingMarkets.com, shows TAN has actually gained as much as 644% in a one-year period. Since TAN began trading in 2008, 62.4% of all rolling one-year time periods have shown gains. Volatility has been just as great on the downside with the largest one-year loss equal to 73.1%.
Over one-week periods, TAN has also delivered greater than average volatility. In a typical one-week period, the ETF has gained 2.73%, more than 22 times the average one-week gain of SPDR S&P 500 (NYSE: SPY) which has been 0.12%.
In the short-term, TAN has become oversold with a PowerRatings of 8 and the ETF could be a buy under $38.58.
All data is as of the end of day on 11/18/2013.