Chris Johnson

Stay One Step Ahead of the Crowd

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As a case in point, the table below displays the current weighted analyst rankings for some of the more widely traded ETFs.

Note that the ETFs listed among the most heavily buy-rated have been the relative-strength laggards during the recent rally and have experienced more selling pressure than other ETFs on down days. This action is partially due to the fact that stocks comprising these ETFs are among the more "overloved" companies in the market.

Conversely, ETFs that are at or near the bottom of the list represent those groups of stocks that are among the least liked. Thus, there is a vacuum of potential sellers, making it easier for these stocks to run higher on the slightest hint of positive news. Clearly, this has been the case with many of the companies that make up the ETFs at the bottom of the list.

So listen for the piper if you want to know where the money is headed. And jump on the new trend before the crowd.

Chris Johnson is the co-editor of The Winning Edge trading service designed to help you make options profits around corporate earnings and other market events. For more information about him, read his bio here.