As of midday on Thursday, a sizable number of top-rated stocks and exchange-traded funds – from 10-rated ^MNI^ to ^UKF^ – drew buyers off the sidelines and into the market.
While traders should be alert to the potential for a late day sell-off, as has been the case with rallies over the past few days, the midday strength late in the week is a welcome sign for traders using Stock, ETF and Leveraged ETF PowerRatings to help them find the best edges in the market every day.
Stocks
Among the stocks that had earned top Stock PowerRatings of 10 going into Thursday’s trading was the above-mentioned McClatchy Company (chart below). The stock earned top Stock PowerRatings on both Monday and Tuesday of this week and within days was up more than 10%.
Other stocks making big gains after earning Stock PowerRatings of 10 include ^NEWP^ and ^USG^.
Should the market continue to press higher, traders using PowerRatings will be looking for opportunities to exit over the next few days. For some quantified, dynamic exit strategies for stock traders – as well as tips for optimizing entries, click here to read: How to Find the Best Stocks to Trade Every Day.
Exchange-Traded Funds:
Many of the ETFs making the most impressive gains in the current rally are leveraged ETFs such as the ^UKF^ (below), which earned top 10 Leveraged ETF PowerRatings a week ago today as well as yesterday. The fund was up more than 4% at midday on Thursday alone.
Traders who scaled in to positions as they moved lower (but remained above the 200-day moving average) were particularly rewarded as a number of exchange-traded funds, especially leveraged exchange-traded funds, earned Leveraged ETF PowerRatings of 10 more than once during the sell-off. By adding to positions (typically by taking one’s traditional position size and dividing it into two, three or even four parts), our research indicates that short term traders can potentially increase their gains and their accuracy rate when trading exchange-traded funds.
For more information on how to scale-in when trading top-rated Leveraged ETF PowerRatings funds, click here to read our latest free report: 3 Ways to Increase Your Gains: Trading Leveraged ETF PowerRatings.
When markets are volatile, as they have been over the past few weeks, it can be hard for traders to separate what really matters from the noise and the “news.” Stock, ETF and Leveraged ETF PowerRatings help provide short term traders with a data-driven framework that is based on quantified, trading simulations and rigorous statistical analysis. If you’re looking for the right kind of tools to help deal with the uncertainty of modern markets, then PowerRatings may provide the first step in the right direction.
Find out more about what Ultimate PowerRatings can do for you and your trading. Quantified ratings for stocks, ETFs and leveraged ETFs – all in one place.Click here to launch your free, 7-day trial to our Ultimate PowerRatings today.
David Penn is Editor in Chief at TradingMarkets.com.