Get Leveraged ETF Setups with a High Winning Percentage
Introducing Leveraged ETF PowerRatings – A powerful rating system that ranks Leveraged ETFs on a scale of 1-10 to help individual investors find new trading edges. Built on a proprietary trading methodology, Leveraged ETF PowerRatings is a quantified and statistically validated rating system that has been backtested on over 17,000 trades and over 100 Leveraged ETFs from inception through 2009.
The concept behind Leveraged ETF PowerRatings is one of simplicity and effectiveness, yet behind the simple 1-10 ratings scale lies a heavily researched algorithm.
As shown by the simulated trades in our backtesting, a PowerRating of 9 has an average of 74% winning trades, and a PowerRating of 10 (the best rating for long trades) has an average of 79% winning trades from inception through 2009. That means nearly 8 out of 10 Leveraged ETFs with a PowerRating of “10” – the best rating – went up in price over the next few trading days!
Conversely a PowerRating of 1 or 2 indicates a likely downward price action, suggesting that ETF be avoided or shorted. PowerRatings of 1 on average lost 81% of trades over the next few trading days.
Click here to get today’s Leveraged ETF PowerRatings.
Here are 7 ETFs You Need to Know for Monday
Buyers were on the offensive to finish the week, with financials and energies being the biggest sector beneficiaries. Up well over 3% were both the ^UYG^ and the ^DIG^.
Continued strength in equities has helped push inverse leveraged ETFs like the ^TZA^ to new oversold extremes. TZA has closed in extreme oversold territory for three consecutive days.
With continued overbought conditions prevailing, the only exchange-traded fund with an ETF PowerRating above 8 late in trading on Friday was the ^BSV^.
Among leveraged ETFs the high PowerRatings pickings are somewhat better, with both the ^FAZ^ and the ^TYP^ earning upgrades to 9.
Depsite continued equity strength, the dollar remains relatively unchanged. This mean more neutral trading for the ^UDN^.