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One of the noteworthy developments in recent days has been the move in automakers. The groups were under selling pressure after Donald Trump has escalated the threat of a trade war with Europe, warning that the US will slap a tax on cars made on the continent if the European Union (EU) retaliates against tariffs on imports of steel and aluminum.  After surging nearly 23 percent in 2017, the First Trust NASDAQ Global Auto ETF (CARZ) fell about 2 percent YTD, slightly underperformed the S&P.  Now the question is whether recent weakness is a pause that refreshes or it’s a beginning of something worse?  Below is an update look at a trade in CARZ.

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 – First Trust NASDAQ Global Auto ETF (weekly)

Our “U.S. Market Trading Map” painted CARZ bars in red (sell) – see area ‘A’ in the chart.  CARZ moved down to test support at the prior low set in early February after the recovery rally ran out of steam just above 43.  That level was significant when the ETF fell below in in late January.  Last week’s massive bearish engulfing…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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