The ETF Ranking, Signals and Setups Table makes it easy to separate the leaders from the laggards, track trend signals and find mean-reversion candidates. This article will explain the key features of this customizable table and show how to get the most out of it. We will finish with a chart example showing the origins for signals and numbers on the table. A complete table is shown at the end of this article and features include:
- sort and rank by StochClose values
- separate uptrends from downtrends
- find recent StochClose signals
- identify ETFs with mean-reversion setups
- link to current SharpChart
- search for a specific symbol or term
StochClose and RSI
StochClose (125,5), which is detailed in this article, determines trend direction. A move above 60 signals an uptrend and this signal remains valid until there is a move below 40, which signals the start of a downtrend. StochClose values are also used to rank price performance for the ETFs. 14-day RSI is used to identify oversold conditions when it dips into the 30-50 zone. Such conditions serve as an alert for further chart analysis. This technique is covered in this article and video.
The chart below shows an example using QQQ. StochClose turned bullish with a move above 60 in mid April and remains bullish (green shading). The blue shading shows when RSI dips into the 30-50 zone. The first dip below 50 does not always lead to a bounce, but tells us that the ETF pulled back or consolidated and we should watch for a bullish setup or catalyst.
Core ETF Chart List
This table covers ETFs in the Core list, which contains over 110 names and is detailed in this article. Well over half are industry group ETFs with a number of high beta names, such as the ARK ETFs, the Grayscale Bitcoin Trust, Autonomous/Electric Vehicles, eSports, and Cannabis. This list also includes the usual suspects: the major index ETFs, the sector SPDRs, bond ETFs, commodity ETFs, international ETFs and currency ETFs.
Working with the Table
Users can sort by clicking any of the column headings. For example, click on “StochClose” to sort by this value and rank the ETFs from top to bottom. ETFs with StochClose values above 90 are near six month highs, and ETFs with StochClose values below 10 are near six month lows.
The default setting shows 30 ETFs per page, which accounts for around 25% of the total. This makes it easy to find ETFs in the upper quartile. Users can change “Show 30 entries” to “Show 50 entries” to see more ETFs per page.
Users can hold the SHIFT key and click two column headings for a first and second sort. For example, hold the SHIFT key, click “Trend” for the first sort and then click “RSI” for the sub-sort. This can be used to show ETFs in Uptrends with relatively low RSI values. Note that the blue shading at the top of the column darkens when sorted.
“5day Chg” shows the absolute change in the StochClose value over the last five trading days. The image below shows a sort with the biggest gainers at the top.
“Trend” defines ETFs by uptrend or downtrend
“Date” reflects the date when the uptrend or downtrend started
“Bars” represents the number of trading bars (days) since the trend signal
“Change” is the percentage change in price since the trend signal
“RSI” is the last value for 14-day RSI
The image below shows a sort by “Bars”, which puts the most recent StochClose signals at the top (fewest bars since signal).
Finding Mean-Reversion Candidates
The “Up&OS Down&OB” column highlights ETFs with possible mean-reversion setups (short-term pullback within long-term uptrend). A bullish mean-reversion setup is present when the trend is up and RSI dips into the 30-50 zone over the last five days.
Note that RSI could be above 50 currently, but still show as “oversold” because it dipped into the 30-50 zone at some point over the last five days. Identifying setups over a five day period insures that we will not miss setups between updates. A bearish mean-reversion setup is present when the trend is down and RSI moves into the 50-70 zone over the last five days.
The 52wk Range column quantifies the location of the last close relative to the 255-day high-low range (closing prices only). A value of 100 means the ETF closed at a 52-week high and a value of 0 means the ETF closed at a 52-week low. A value of 50 means the ETF is in the middle of its 52-week range.
Note that the 52wk Range can be at 100 and StochClose can be at 99.6 (just below 100). This is because StochClose is smoothed with a 5-day SMA and the 52wk Range indicator is not smoothed. This five day smoothing in StochClose adds a little lag.
Table and Chart Example
The table below shows results when searching for “xhb”, the Homebuilders ETF (XHB). In addition to symbols (code), users can also search for oversold, overbought, uptrend or downtrend to filter by a certain term.
The XHB chart below shows the origins of the signals and values on the table. First, we can see that StochClose (125,5) is 89.6 on the table and the chart. Second, StochClose fell 8.8 points and the 5-day Chg is -8.8. Third, Stochclose triggered bullish on May 26th (Uptrend) and XHB is up 36.7% over the last 154 days. RSI is in the oversold zone (44.2) and the trend is up, which means a mean-reversion setup materialized (oversold). And finally, the 52wk Range is 92.4, which means XHB is close to a 52-week high.
Mean-reversion setups serve as alerts to take a closer look at the chart and perhaps put the ETF on our watch list. Oversold RSI means there was a pullback or consolidation within the uptrend and a bullish continuation pattern could be forming (flag, pennant, triangle, wedge).
The last column links to a daily SharpChart from StockCharts with dividend adjusted data (sigh). This chart includes RSI(14) and the Full Stochastic (125,5,1), the latter can be used as a proxy for StochClose (125,5). The Full Stochastic uses the high-low range based on intraday highs and lows, while StochClose uses the high-low range based on closing prices.
Conclusions and Summary
The ETF Ranking, Signals and Setups Table is designed to define trends, rank performance, track signals and identify mean-reversion setups. At its most basic, ETFs with bullish StochClose signals (uptrends) should be favored over ETFs with bearish signals. Taking it one step further, ETFs with higher values for StochClose and 52wk Range would be favored over ETFs with lower values. ETFs with uptrends and relative strength should be on our watch list for bullish setups (pennants, flags, wedges, retracements, oversold RSI). ETFs with downtrends and/or serious relative weakness should be avoided. Even though ETFs that are short-term overbought and in downtrends have bearish mean-reversion setups, I generally avoid shorting equity-related ETFs.
ETF Rankings, Signals and Setups - Sample
| Sort Prefix and Name ------- | Code | Stoch Close | 5day Chg | Trend | Date | Bars | Change | RSI | Up&OS Down&OB | 52wk Range | Link |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1010 S&P 500 SPDR | SPY | 97.1 | 2.1 | Uptrend | 5/21/2020 | 157 | 25.93% | 58.2 | 98.3 | SPY | |
| 1015 Nasdaq 100 Trust ETF | QQQ | 97.8 | 0.0 | Uptrend | 4/17/2020 | 181 | 44.86% | 61.3 | 98.7 | QQQ | |
| 2010 Technology SPDR | XLK | 95.1 | -3.6 | Uptrend | 4/30/2020 | 172 | 40.83% | 58.4 | 97.0 | XLK | |
| 2020 Consum Discretion SPDR | XLY | 98.2 | 6.0 | Uptrend | 4/30/2020 | 172 | 37.74% | 60.8 | 99.8 | XLY | |
| 2030 Financial SPDR | XLF | 97.7 | 0.5 | Uptrend | 8/24/2020 | 92 | 17.36% | 60.9 | 85.5 | XLF | |
| 2040 Industrials SPDR | XLI | 90.8 | -1.6 | Uptrend | 6/5/2020 | 147 | 16.67% | 48.8 | Oversold | 94.2 | XLI |
| 2080 Energy SPDR | XLE | 76.1 | 2.1 | Uptrend | 12/7/2020 | 19 | -0.05% | 58.3 | Oversold | 43.1 | XLE |
| 2090 Basic Materials SPDR | XLB | 97.6 | 3.0 | Uptrend | 5/21/2020 | 157 | 38.29% | 62.7 | 100.0 | XLB | |
| 3010 TE Internet ETF | FDN | 82.6 | -12.1 | Uptrend | 4/17/2020 | 181 | 51.52% | 52.9 | Oversold | 92.9 | FDN |
| 3010 TE Mobile Payments ETF | IPAY | 97.8 | 1.3 | Uptrend | 5/22/2020 | 156 | 42.31% | 66.4 | 98.1 | IPAY | |
| 3010 TE Semiconductor iShares | SOXX | 95.7 | 4.3 | Uptrend | 4/29/2020 | 173 | 58.15% | 69.1 | 100.0 | SOXX | |
| 3010 TE Software ETF | IGV | 83.0 | -12.1 | Uptrend | 4/30/2020 | 172 | 44.69% | 53.0 | 90.8 | IGV | |
| 3020 CD Home Construction ETF | ITB | 72.9 | -12.8 | Uptrend | 5/22/2020 | 156 | 30.47% | 41.7 | Oversold | 85.0 | ITB |
| 3020 CD Homebuilders SPDR | XHB | 87.8 | -9.4 | Uptrend | 5/26/2020 | 155 | 37.25% | 45.9 | Oversold | 93.1 | XHB |
| 3020 CD Online Retail ETF | IBUY | 92.4 | -5.1 | Uptrend | 4/17/2020 | 181 | 132.99% | 65.6 | 98.3 | IBUY | |
| 3040 IN CE Green Energy ETF | QCLN | 97.6 | -1.4 | Uptrend | 5/21/2020 | 157 | 178.40% | 72.5 | 100.0 | QCLN | |
| 3040 IN CE Solar Energy ETF | TAN | 97.7 | -1.6 | Uptrend | 6/3/2020 | 149 | 201.94% | 75.1 | 100.0 | TAN | |
| 3040 IN CE Wind Energy ETF | FAN | 99.8 | -0.2 | Uptrend | 6/1/2020 | 151 | 72.77% | 91.5 | 100.0 | FAN | |
| 3060 HC Biotech ETF | IBB | 80.7 | -16.1 | Uptrend | 11/10/2020 | 37 | 9.48% | 52.1 | 89.7 | IBB | |
| 3090 BM Metals & Mining SPDR | XME | 97.2 | 6.1 | Uptrend | 7/20/2020 | 117 | 56.70% | 71.2 | 100.0 | XME | |
| 3090 BM Rare Metals SPDR | REMX | 97.4 | -2.2 | Uptrend | 6/8/2020 | 146 | 90.71% | 81.8 | 100.0 | REMX | |
| 3200 ARK Genomic Revolut ETF | ARKG | 78.1 | -19.4 | Uptrend | 4/13/2020 | 185 | 181.46% | 53.8 | 86.2 | ARKG | |
| 3200 ARK Industrial Revolut ETF | ARKQ | 96.4 | -2.3 | Uptrend | 4/28/2020 | 174 | 105.27% | 72.6 | 100.0 | ARKQ | |
| 3200 ES Vid Games eSports ETF | ESPO | 97.1 | 4.8 | Uptrend | 4/8/2020 | 187 | 80.43% | 71.7 | 100.0 | ESPO | |
| 3200 ES Video Game Tech ETF | GAMR | 98.7 | 2.3 | Uptrend | 4/13/2020 | 185 | 82.54% | 72.9 | 100.0 | GAMR | |
| 3200 EV Autonomous EV ETF | DRIV | 99.7 | 0.0 | Uptrend | 5/29/2020 | 152 | 81.95% | 80.9 | 100.0 | DRIV | |
| 3200 MJ Alternative Harvest ETF | MJ | 79.2 | -4.2 | Uptrend | 11/19/2020 | 30 | 14.10% | 57.2 | Oversold | 64.1 | MJ |
| 4014 Treas 20+YR T-Bond ETF | TLT | 12.8 | 0.3 | Downtrend | 10/6/2020 | 62 | -2.01% | 43.3 | 56.4 | TLT | |
| 5021 PM Gold Trust SPDR | GLD | 47.2 | 13.8 | Downtrend | 11/27/2020 | 25 | 7.88% | 70.0 | Overbought | 80.3 | GLD |
| 6010 Asia China Technology ETF | CQQQ | 96.6 | 11.0 | Uptrend | 5/12/2020 | 164 | 57.69% | 68.5 | 100.0 | CQQQ | |
| 6010 Asia India MSCI Index ETF | INDA | 100.0 | 5.3 | Uptrend | 7/7/2020 | 126 | 33.12% | 76.1 | 100.0 | INDA | |
| 6010 EM Emerge Mkts eCom ETF | EMQQ | 96.0 | 5.9 | Uptrend | 4/20/2020 | 180 | 89.93% | 65.7 | 100.0 | EMQQ | |
| 7100 Bitcoin Trust Grayscale | GBTC | 98.5 | 4.3 | Uptrend | 5/7/2020 | 167 | 229.10% | 77.6 | 100.0 | GBTC | |
| 7100 US Dollar Bullish ETF | UUP | 2.0 | -4.0 | Downtrend | 6/1/2020 | 151 | -9.32% | 31.9 | 0.0 | UUP | |
| Sort Prefix and Name ------- | Code | Stoch Close | 5day Chg | Trend | Date | Bars | Change | RSI | Up&OS Down&OB | 52wk Range | Link |