With the market’s sizable move higher on Monday and mild pullback on Tuesday, there remain a large number of exchange-traded funds (ETFs) that have earned exceptionally low, “consider avoiding” ETF PowerRatings.
Among these ETFs are a number of country funds such as the ^EWG^ and the ^EWU^ (below).
Both international funds have had low ratings for the past few days going into trading on Wednesday. With their low ETF PowerRatings, both ETFs are the kind of market that short term traders should consider avoiding or selling short.
On the “consider buying” side of the ETF PowerRatings ledger is the ^SMH^.
The Semiconductor HOLDRS have had higher ETF PowerRatings in recent days. In fact, the ETFs’s current rating is a result of being downgraded from higher levels earlier in the week. Between the fund’s bounce on Monday and a retreat of just over 1% on Tuesday, SMH has managed to maintain a “consider buying” short term Stock PowerRating.
On the leveraged side of things there are a number of ETFs that have earned top, “consider buying” Leveraged ETF PowerRatings of 8 or more. These funds include the ^ERY^ as well as the ^SKF^ (below).
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David Penn is Editor in Chief at TradingMarkets.com.