Going into trading on Thursday, short term traders will find a larger than normal number of markets earning top PowerRatings for today. Among their ranks are an especially sizable number of leveraged ETFs that have earned significant PowerRatings upgrades due to the selling of the past few days.

These upgrades in leveraged ETFs will be the focus of today's report. Of late, most of the opportunities in leveraged ETFs have been in inverse leveraged ETFs. This has been because inverse leveraged ETFs offer some of the best trading opportunities when markets are running way to the upside and pullbacks in non-inverse, non-leveraged ETFs are few and far between.

I have written about trading inverse leveraged ETFs in previous articles for TradingMarkets. Click here to read a recent commentary: "Ultimate PowerRatings Trading Report: Overbought Markets and Inverse Leveraged ETFs".

However, with a broad market pullback creating significantly oversold conditions in a variety of ETFs from the SPDR S&P 500 ETF (SPY) to the iShares Russell 2000 Index Fund (IWM), opportunities for traders to scale-in to top rated leveraged ETFs like the Direxion Technology Bull 3X Shares (TYH) (below) and the ProShares Ultra Oil & Gas (DIG) are more numerous than they have been in several weeks.

Other technology-based leveraged ETFs earning top Leveraged ETF PowerRatings upgrades for Thursday are the ProShares Ultra Semiconductors (USD) and the ProShares Ultra Technology (ROM).

One of the highest rated leveraged ETFs for Thursday is the ProShares Ultra Basic Materials (UYM) (below). This fund was one of the first to begin earning significant upgrades and should be among those traders keep on their watchlists as long as its PowerRatings remain above 8.

It is worth pointing out that not only have a number of leveraged ETFs earned major upgrades in the past 24 hours, but also many inverse leveraged ETFs have earned significant downgrades after making recent moves to the upside. Among their ranks are familiar inverse leveraged funds like the ProShares UltraShort Semiconductors (SSG) and the ProShares UltraShort Oil & Gas (DUG) (below).

Remember, traders trading leveraged ETFs should consider adjusting their position sizes accordingly. For example, when trading a 2x leveraged ETF, consider cutting your position size in half to avoid having larger-than-normal exposure to the market.

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David Penn is Editor in Chief at TradingMarkets.com.