Ultimate PowerRatings Report: Trading Opportunities in Energy, Telecom and Financials
For traders looking to maximize the high probability trading opportunities in stocks, exchange-traded funds (ETFs), and leveraged ETFs, Ultimate PowerRatings is your one-stop high probability trading shop.
What are Ultimate PowerRatings? Ultimate PowerRatings are a quantified, backtested rating system that rates stocks and ETFs on a scale of 1 to 10. The lowest rated stocks and funds are ones that savvy traders should avoid – or sell short. But those stocks and ETFs with PowerRatings of 8 or higher are one that have historically made significant short term gains based on our testing.
For stocks, our highest rated stocks have made significant short term gains nearly 70% of the time. For ETFs and leveraged ETFs, top rated funds have made significant short term gains nearly 80% of the time.
To help traders better add Ultimate PowerRatings to their short term trading business, this Ultimate PowerRatings Report will provide daily tips on which stocks, ETFs and leveraged ETFs should be on the watchlists of all high probability traders looking to buy markets after they’ve pulled back and to take profits as market rally back into strength.
Stocks
With U.S. markets rallying modestly on Tuesday, the number of top rated stocks is relatively low as trading begins on Wednesday.
Among the best bets are 9-rated stocks like ^CBL^, which pulled back by more than 6% on Tuesday to close in oversold territory above the 200-day moving average.
Another stock for short term traders to keep an eye on over the next few days is the very oversold VeriFone Holdings ^PAY^.
VeriFone Holdings has closed in oversold territory for the past three consecutive trading days, closing below its previous open for four straight days.
Remember when trading stocks with high probability trading strategies like Ultimate PowerRatings, take advantage of intraday weakness to enter positions as low as possible. If you are unfamiliar with the strategy of buying on intraday weakness, click here for a recent tutorial.
ETFs
As is the case with stocks, there are no exchange-traded funds with top PowerRatings of 10. There are, however, a few fund with PowerRatings of 9 and 8, that may be worth watching if the markets continue to retreat.
With a PowerRating of 9, the ^IEZ^ is one of the higher rated funds going into Wednesday’s trading.
IEZ bounced on Monday after two sharply lower days on Thursday and Friday. Still that bounce was not enough to lift the fund out of oversold territory above the 200-day.
A majority of the top rated ETFs for Wednesday are from the energy patch. One that isn’t is the ^RWX^.
Leveraged ETFs:
Looking for leveraged ETF trading strategies in all the wrong places? Ultimate PowerRatings also provides strategies for short term traders interested in trading leveraged ETFs in a quantified, systematic fashion.
For Wednesday, one of the more potentially attractive leveraged ETFs is the ^FAZ^, which earned a PowerRating of 8.
FAZ reversed sharply on Monday and retreated to oversold territory on Tuesday. Remember, with leveraged ETFs like FAZ, the 200-day moving average is not a factor when it comes to being overbought or oversold. Remember also that FAZ, as a triple leveraged ETF, is not an ETF for the meek. Leverage, as the saying goes, cuts both ways and traders who trade leveraged ETFs should be careful to respect both the potential and the potential perils of trading leveraged instruments.
Be sure to check back tomorrow for Thursday’s Ultimate PowerRatings Report available only at TradingMarkets. And if you haven’t already subscribed to Ultimate PowerRatings, click here to launch your free trial today.
David Penn is Editor in Chief at TradingMarkets.com.