Ultimate PowerRatings Trading Report: Strategies for Buying the Selling in Retail, Banking, Real Estate

Here’s a look at some of the sector ETFs that are earning top ETF PowerRatings and top ETF PowerRatings upgrades ahead of trading on Tuesday.


The biggest upgrade of the day on Monday was in the ^XRT^ (below). XRT’s ETF PowerRatings shot up from 5 to 9 on the first trading day of the week, as the fund pulled back by more than 2% and closing at a new short term low. The last time XRT closed with an ETF PowerRating of 9 was back in late May. Five days later, the fund was up more than 3.5%.

XRT Chart

XRT represents the retail sector, which is often included with consumer discretionary or consumer cyclicals from a sector perspective. Other key retail and consumer discretionary-related funds include the ^RTH^ and the ^XLY^. XLY also was among the bigger upgrades of the day on Monday, moving from an ETF PowerRating of 6 to an ETF PowerRating of 9.

Banking and Finance

Banking ETFs also have been among those exchange-traded funds earning upgrades early in the trading week. Leading the pack in this regard is the ^KRE^ (below), which closed with ETF PowerRatings of 5 for two consecutive trading days before earning an upgrade to 8 as of Monday’s close.

KRE Chart

Financal and banking exchange-traded funds represent some of the most widely traded ETFs in the market, including favorites like the ^XLF^ and the ^UYG^.

Real Estate and REITs

The highest rated exchange-traded funds by sector are clearly the real estate and REIT-related funds like the ^VNQ^ and the ^RWR^. Both VNQ and RWR earned ETF PowerRatings of 9 as of the end of trading on Monday.

IYR Chart

Earning an ETF PowerRating upgrade from 8 to 9 as of Monday’s close was the ^IYR^ (above). The last time IYR closed with an ETF PowerRating of 9 was May 26. One day later, the ETF was up more than 5%.

If you use exchange-traded funds to trade sectors, our ETF PowerRatings may be a valuable tool to see at a glance which markets and sectors have pulled back to levels from which they have historically advanced. To learn more about how to add ETF PowerRatings to your short-term trading, click here to launch your free, 7-day trial to ETF PowerRatings today.

David Penn is Editor in Chief at TradingMarkets.com.