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Updated ETF Power Ratio – October 2nd, 2022

Here's the update for September, 2022 - Lowest Power Ratio for as long as I can remember, seems due for a rebound if even short-lived

 

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Learn how to use the Power Ratio Here

15 Comments

  1. Ken Witt says:

    It would be helpful to repeat the column headings above each section for reference and at the very end.
    One at the beginning (top) is not enough. Have to scroll back up to refresh one’s memory of what that column heading is.

    1. Mark Soberman says:

      Hey Ken, that’s a good idea. Let me see if the developer can get that accomplished. Thanks.

  2. Thomas says:

    Very interesting. Thank you.

  3. brian garnett says:

    If I use the power ration for investments – should I use weekly or wait for monthly figures for the medium/long term basis?
    thanks

    1. Mark Soberman says:

      Brian, I would suggest you combine this with the individual rankings of your specific ETF. Keep in mind, even a negative/bearish Power Score (like we just entered) can have some ETFs still very much in bullish territory. This is definitely a clear sign that despite some recent strength in areas, there are more under than overperforming ETFs. But, that still means some are and have headed higher. I would typically suggest tightening up stops, and watching the Power Scores very closely of your individual ETF. Thanks.

  4. brian garnett says:

    Thanks – if you are not stopped out do you exit when the PS and LT both go negative?

    1. Mark Soberman says:

      Brian – yes, that’s correct – if both of those roll negative I’m out.

  5. Clint Steiner says:

    Is the idea of this EFT investing strategy to buy / sell all the time? If your EFT is out of the green zone do you sell and replace with another one?

    What about Fees of the EFT? Won’t that have a big impact on returns with the constant rebalancing? You might be in on EFT for a couple of months but you already paid the Fees?

    1. Mark Soberman says:

      Hello – I suggest you review the tutorial here: http://www.netpicksetfinvestor.com/tutorials-netpicks-etf-investor/ That gives you a solid idea how we use it and what we suggest. We’re almost never buying & selling. For example during this bull run I’ve been in for over a year. That won’t always be the case but review that page, and shows you what we look for (primarily the values the Power Score & LT Trend) Thanks.

  6. brian garnett says:

    Hello,
    What is the % number for the PR to turn white? (looks like 62 or 63!)
    Also can the PR change INTRA month, on a weekly basis?
    thanks
    Brian

    1. Mark Soberman says:

      Hello, the color change will scale differently over time based upon how many months we have but your estimate is likely in range. What I really look for, besides any clear trend lower (or higher), is a cross-over of 50 for two consecutive weeks. That’s the main bearish indicator. And reverse, if we go from bear to bullish, it occurs with two consecutive weeks 50+. This is updated weekly. Thanks.

  7. brian garnett says:

    Hi,
    Is it possible to see the historical WEEKLY PR percentages?
    thanks
    Brian

    1. Mark Soberman says:

      At the moment, we update it weekly, then archive the final result each month. Will consider potentially archiving on a weekly basis. Thanks.

      1. brian garnett says:

        Mark – what do you think of the idea of going to cash when the PS hits 60 on the way down and long when it passes 40 on the way up?
        So 40-60 is neutral.
        thanks

        1. Mark Soberman says:

          Hello Brian — I’ve been using two weeks in a row below 50 as a confirmed bear market. And same on the upside crossover back 50+. However, definitely between 50-60 things are breaking down – and you could use it as a partial exit (sometimes it holds at 50+). Same goes on 40+. Perhaps you use it to start to move back in but not in total since things are still negative at that time.

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