Trading Asia: More ETF PowerRatings Strategies for Short Term Traders

In today’s ETF PowerRatings report, I want to highlight a trio of country ETFs that have earned top ETF PowerRatings for Thursday’s trading. Despite market strength early in the week, there are a few funds that remain potential opportunities for high probability traders and a number of country ETFs in general – and Asian country exchange-traded funds in specific – are among them.

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All three of the ETFS in today’s report have ETF PowerRatings of 9. Our research into short term ETF trading behavior going back to 2003 indicates that exchange-traded funds that have earned ETF PowerRatings of 9 have made significant short term gains more than 75% of the time. This research is based on thousands of simulated ETF trades in a wide variety of equity index, country, and sector funds.

The ^EWT^ continues to be among our highest rated ETFs as buyers have yet to step in to take full advantage of oversold conditions.

EWT Chart

While EWT moved somewhat higher on Wednesday, the fund remains high-rated and should be among those ETFs high probability ETF traders consider when looking for potential short term opportunities here near the end of the week.

Also moving higher in recent days but still retaining a top ETF PowerRating is the ^EWY^.

EWY Chart

EWY had earned an ETF PowerRating of 10 for three consecutive days to finish the previous week, and saw its PowerRating slip to 9 as the ETF moved higher at the beginning of this week. However that buying pressure has not been enough to bring down the fund’s PowerRating any farther than 9.

Last but not least is the ^EWM^.

EWM Chart

In many ways, the EWM has followed the same path of the South Korea Index Fund. After earning an ETF PowerRating of 10, the fund began creeping higher. And that modest – very modest – advance has been enough to take the fund’s PowerRating from a 10 to a 9, but not enough to remove it from the category of “consider buying” for high probability ETF traders.

One Special Asian ETF note: there is one Asian exchange-traded fund that high probability traders should probably steer clear of for now: the iShares FTSE/Xinhua China 25 ETF ^FXI^. After slipping below its 200-day moving average in late January – and remaining below that level for the past several days – FXI’s ETF PowerRating has been significantly downgraded and, going into trading on Thursday, has earned a “consider avoiding” ETF PowerRating of 3.

Isn’t it time you gave ETF 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