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Banks outperformed the market Friday following report that the U.S. economy added 209,000 jobs last month, according to the Labor Department, well above the expected gain of 183,000. The SPDR S&P Bank ETF (KBE) rose 0.81 percent. Now the question is whether the rally has more legs? According to our “U.S. Market Trading Map”, there could be more gains ahead for the ETF. Below is an update look at a trade in KBE.

The graphic below is from our “U.S. Market Trading Map”, show the near-term technical bias and trading ranges. As shown, the underlying is in a short-term bullish trend when the price bars are painted in green. The underlying is in a short-term bearish trend when the price bars are painted in red. The yellow bars identify period of neutral or sideways trading pattern. Additionally, the light-blue shading represents the short-term trading range. A move above or below that range is considered overbought (as represents by the red shading) or oversold (as represents by the dark-green shading). Readings above or below the red and green shaded areas are considered extremely overbought or extremely oversold.

Chart 1.2 – SPDR S&P Bank ETF (weekly)

Our “U.S. Market Trading Map” painted KBE bars in dark green (weak buy). Over the past few weeks, KBE has been basing sideways using the 43 zone as support. This is a bullish development, represented an orderly high-level consolidation period in the aftermath of the June breakout. Money Flow measure held firmly above the zero line since the ETF reached an interim low in summer 2016, indicating…Click here to read more.

You see, our trend-following system is very unique as it attempts to pick turns before others see them. Timing is everything and if you’ve applied our system correctly, you should have made a killing in any markets.

 

This is just an example of many successful trades that our member had enjoyed recently. After all, aren’t you glad you subscribed?

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