Ultimate PowerRatings Trading Report: Opportunities in Coffee, Construction and Crude

Last week I underscored five markets, two in stocks and three in exchange-traded funds, that PowerRatings traders may want to keep on their trading radar over the next few days.

Among these markets were a pair of financially-related ETFs: the ^IAT^ and the ^RKH^. Both of these funds earned top ETF PowerRatings as of the open on Wednesday and have been moving higher ever since.

IAT Chart

Continued strength in the markets – such as we saw on Thursday – will likely bring these markets up to levels where high probability traders can begin taking exits.

For today, we’ll look at another pair of stocks and a trio of ETFs – including a leveraged ETF – that traders should be including in their watchlists over the balance of the week.


Among the large number of stocks earning PowerRatings of 9 or higher ahead of trading on Monday, one of the more interesting is ^PEET^, which pulled back by more than 5% on Thursday.

PEET Chart

PEET had been moving lower in the days preceding its major slide late last week. With a 2-period RSI of less than 2, PEET has closed at its lowest level since early March.

Another interesting pullback that has resulted in an exceptionally oversold ETF market is the retreat in shares of the ^AMB^.

AMB Chart

AMB has closed lower for the past four trading days in a row (Thursday’s close was at the same level as Wednesday’s close, otherwise it would be five days in a row). AMB has a 2-period RSI of less than 2 – like PEET – and is trading at its lowest level since mid-March.

Exchange-Traded Funds:

There are relatively few exchange-traded funds earning top PowerRatings for Monday, due in large part to the generally overbought conditions of the market at the present time. One of the exceptions is the ^ITB^.

ITB Chart

ITB has closed lower for the past four days leading into trading on Monday. This selling has created a strongly oversold market, with ITB earning an ETF PowerRating of 10 and a 2-period RSI of less than 6.

Leveraged ETFs:

There are actually more leveraged ETFs with top PowerRatings of 9 or higher than there are regular, non-leveraged ETFs with top PowerRatings going into Monday’s trading. This advantage, however, is not sizable (there are not an overwhelming number of these funds either). There are however places where PowerRatings traders can look for potential opportunities in the near term in the leveraged ETF market.

Among these potential opportunities is the increasingly oversold market for the ^ERY^.

ERY Chart

ERY has closed lower for six consecutive trading days, dropping to its most oversold levels since mid-February and closing near its lowest levels of the year. As such, ERY has a Leveraged ETF PowerRating of 9.

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David Penn is Editor in Chief at TradingMarkets.com.