Sunday, January 3, 2010

Guide To Top Leveraged ETFs For 2010: Short Term, Medium Term, Long Term

We track all leveraged ETFs on the market here. We computed the daily, weekly, and monthly RSI values of all leveraged ETFs in the U.S stock market. We then sorted them based on three timeframes, short term (days), medium term (weeks), and long term (months).

Here are the top oversold and overbought ETFs for 2010 for all these timeframes.

Since leveraged ETFs are evil and have caused 'buy and hold' investors hundreds of billions of dollars in losses, they are not really indicated for medium and long time frames, they really should only be used in the short term. The lists below can help you get a good indication of what is overbought and oversold, i.e, what to buy and what to sell.

The lists show the ETF symbol, ETF name, last price, and RSI7 daily, weekly, and monthly values.

These are the 2009 returns, all ETFs in one huge chart (please click to enlarge):

1. Short Term

1.1. Oversold:

Clearly oversold in this timeframe are RTW (Rydex Inverse 2x S&P Select Sector Technology), YCL (ProShares Ultra Yen), and an oil ultra short ETN, DTO (PowerShares DB Crude Oil Dble Short)

1.2 Overbought:

In the overbought category here we have YCS (ProShares UltraShort Yen), UCO (ProSharesUltra DJ-AIG Crude Oil), and RTG Rydex 2x S&P Select Sector Technology).

2. Medium Term

2.1 Oversold

Clearly oversold here is RTW (Rydex Inverse 2x S&P Select Sector Technolog).

2.2 Overbought

Overbought includes ROM, RTG, LTL

3. Long Term

3.1 Oversold

Oversold: EEV (UltraShort MSCI Emerging Markets), CMD (ProShares UltraShort DJ-AIG Commodity), REW (ProShares UltraShort Technology)

3.2 Overbought:

The only overbought ETF is ROM (Powershares Ultra Technology). Again, please remember that these leveraged ETFs suffer from any longer timeframe holding. This is clearly reflected in the lact of overbought names above.

4. Top 10 ETFs based on Average RSI

Below is a list created based on te average of all three timeframes.

Top 10 Oversold:

Top 10 Overbought:

A new name here is BBD ETN (PowerShares DB Base Metals Double Long), and notice QLD (the ultra long QQQ version).

Please note that you may receive technical analysis and alerts of any of these ETFs by entering the symbols in the Technical Trend Analysis Tool, (powered by INO). Better yet, you can get two months of risk-free access to the real-time stock alert tool here (exclusive for Shocked Investor readers).

Please do your own due diligence.


Here are the ETF names, as well as their average daily trading volume:

(please click to enlarge image)

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