Ultimate PowerRatings Report: Top Rated Stocks, ETFs Rally into Strength

A second consecutive day of gains in the broader markets helped provide opportunities for traders using Ultimate PowerRatings to trade stocks, exchange-traded funds (ETFs) and leveraged ETFs to lock in gains in a variety of markets.

With PowerRatings, no doubt many traders took profits when stocks and funds closed above their 5-day moving averages (one of our more popular exit strategies – click here to learn more). Other traders using PowerRatings may simply wait for those top 10, 9 and 8-ratings to disappear before exiting.

But one thing about the recent market’s sell-off and rally remains clear: using PowerRatings to buy short term lows and sell short term highs works.


Relative to exchange-traded funds, the gains in stocks were more modest. ^MNI^ was one of a small number of stocks that earned Stock PowerRatings of 9 or higher earlier in the week.

MNI Chart

The stock rallied by more than 4% from its 9-rated close in late April.

Other stocks to make major gains after earning Stock PowerRatings upgrades to 9 or 10 include ^NEXM^ and, even more recently, ^THQI^, and ^SIMG^.

Going forward, PowerRatings traders may want to keep top rated stocks like ^OSTK^ and ^ETH^ on their short term trading watchlists. Both stocks earned Stock PowerRatings upgrades early in trading on Thursday.

Exchange-Traded Funds (ETFs):

The dramatically oversold conditions that developed midweek helped produce some significant mean reverting bounces in exchange-traded funds in markets like biotechnology. Up well over 2% from its 9-rated close earlier this week was the ^FBT^. Meanwhile, the ^IBB^ closed up more than 2% from the average of its two recent 9-rated closes.

IBB Chart

Over the next few days, short term ETF traders should look toward the growing population of country funds that continued to display top PowerRatings of 9 or 10. Among these are the ^EWH^ and the ^EWA^.

ETF traders also might want to keep an eye on energy ETFs, a few of which earned some of the biggest ETF PowerRatings upgrades of the day on Thursday. Among those energy exchange-traded funds earning top ETF PowerRatings ahead of trading on Friday is the ^OIH^.

OIH Chart

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David Penn is Editor in Chief at TradingMarkets.com.