Continued concerns about the global economy – and the determination among many in Europe to enact “austerity” programs that have threatened recovery in nations like Ireland – have contributed
toward making oversold conditions all the more oversold as June draws toward a close.
The selling has resulted in significant PowerRatings upgrades in a number of exchange-traded fund (ETF) markets, including both country/index and sector ETFs. Traders looking for the biggest edges in the current market should consider these top-rated and recently-upgraded funds among the better potential opportunities.
Among sector funds, those representing technology stocks have earned the most dramatic ETF PowerRatings upgrades intraday on Tuesday. This includes the ^XSD^ and the
^IGW^, both of which earned ETF PowerRatings upgrades from 8 to 9 in the first half of trading on Tuesday. Also earning a one-point,
intraday upgrade was the ^QTEC^, which climbed from a 9 to a 10.
Another sector that is seeing a significant number of funds earn PowerRatings upgrades is the real estate and REIT sector. Earning a two-point intraday upgrade on Tuesday was the ^RWR^, while the ^VNQ^ gained one-point. Both funds were rated 10 as of midday on Tuesday.
There was no discernible pattern in the country-based exchange-traded funds that were earning major PowerRatings upgrades on Tuesday. From Europe, there was the one-point upgrade in the ^EWD^. From the Americas, there were the two-point upgrades in the ^EWW^ and the ^ECH^. EWD was upgraded from 8 to 9 intraday, while EWW and ECH climbed two points to earn top 10-ratings by midday on Tuesday.
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David Penn is Editor in Chief at TradingMarkets.com.