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One of the more noteworthy developments in recent days has been the move in financial services stocks.  The iShares U.S. Financial Services ETF (IYG) underperformed the broader market, fell 0.14 percent on Tuesday to close at 123.59.  The ETF however, has handily outperformed the S&P in 2017, up more than 16 percent.  The S&P is up more than 15 percent in YTD.  Now the question is whether recent pullback is a pause that refreshes or it’s a beginning of something worse? Below is an update look at a trade in IYG.

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. 

Chart 1.1 – iShares U.S. Financial Services ETF (daily)

Our “U.S. Market Trading Map” painted IYG bar in red (sell).  After a strong run of outperformance, IYG peaked last week at 124.77 and trended steadily lower as it worked off overbought conditions. Tuesday’s downside follow-through confirmed Monday’s bearish reversal signal and setting the stage for a test of support near 122.30, based on the 20-day moving average.  That level is significant in charting terms.  It offered support and acted as launching pad…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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