Ultimate PowerRatings Trading Report: Top-Rated Health Care and Leveraged Trades in Europe

Consumer cyclicals was the most sought after sector in trading on Thursday, while sellers remained on the offensive in health care. Major equity indexes returned to overbought levels above the 200-day moving average.

Going into trading on Friday, PowerRatings traders in stocks, ETFs and leveraged ETFs should keep their eye open for new opportunities in drug and biotechnology stocks and funds that have earned PowerRatings upgrades in recent days. Be sure also to use the strength in a number of markets to lock in gains on positions taken at lower levels.

Stocks: The Sale in Pharmaceuticals

As noted above, health care and pharmaceutical stocks remain under heavy selling pressure and represent some of our highest rated stocks going into trading on Friday. These high rated stocks include such health care related names as ^AMLN^ and ^ACUR^.

On the decidedly less health-care related front, both ^CCE^ and ^KKD^ (below) will take top Stock PowerRatings into trading on Friday.

KKD Chart

Exchange-Traded Funds: From Russia with Top PowerRatings

Despite strength in exchange-traded funds like the ^SPY^ and the Financial Select Sector SPDRS ETF ^XLF^, there was enough selling on Thursday to help a trio of exchange-traded funds (ETFs) earn major ETF PowerRatings upgrades ahead of trading on Friday.

These funds – all three of which are country funds – are the ^RSX^, the ^EWG^ and the ^VEU^ (below).

VEU Chart

RSX, EWG and VEU all earned ETF PowerRatings upgrades from 7 to 9 late on trading on Thursday.

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Leveraged ETFs: Betting Against Europe

While there are relatively few leveraged ETFs with top leveraged ETF PowerRatings ahead of trading on Friday, there are some leveraged ETFs that will be taking exceptionally low leveraged ETF PowerRatings into trading on the final trading day of the week.

Among those low-rated funds that traders should avoid – or consider selling short – are the ^EPV^ and the ^EUO^ (below).

EUO Chart

Both funds earned leveraged ETF PowerRatings of 2 ahead of Friday’s open.

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David Penn is Editor in Chief at TradingMarkets.com.