With most equity ETFs still earning PowerRatings in neutral territory, traders will need to wait for additional selling before we begin to see the kind of top PowerRatings that signify historical opportunity in the market.
Here are 7 ETFs You Need to Know for Thursday.
Even with Wednesday’s sharp sell-off, there are only two non-leveraged, exchange-traded funds with PowerRatings of 9 heading into Thursday’s session: the ^TUR^ and the ^PFF^ (below).
Shares of PFF pulled back to their lowest levels in a month on Wednesday, closing well within oversold territory above the 200-day moving average.
Among the highest rated exchange-traded funds, neutral conditions continue to be the norm. Earning PowerRatings of 6 were ETFs like the ^SPY^ domestically and the ^FXI^ (below) internationally.
Unlike SPY, the FXI did not pullback into oversold territory during Wednesday’s sell-off.
Earning some of the lowest PowerRatings among the highest rated funds is the ^EWJ^. EWJ earned a 2-point upgrade heading into trading on Thursday after the pullback in the previous session.
The highest rated fund among our high-volume leveraged funds is the S&P 500-based, ^SSO^. The SSO reversed four days’ worth of gains in Wednesday’s sell-off and is moving lower early in trading on Thursday.
One of the biggest upgrades was the four-point move in the ^GDX^ (below). The fund closed below its 5-day moving average for the first time in a week.
GDX had been one of lower rated ETFs heading into Wednesday’s session.
Our highest rated exchange-traded funds have made significant short term gains more than 75% of the time in our historical backtesting. To learn more about trading ETFs using PowerRatings click here today.
David Penn is Editor in Chief of TradingMarkets.com