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One of the noteworthy developments in recent days has been the move in raw materials stocks. The group has been under selling pressure after Donald Trump, following through on one of his most controversial campaign promises, slaps a 25 percent levy on steel and 10 percent charge on aluminum. White House officials say the tariffs are an essential matter of domestic and economic security.  The PowerShares DB Base Metals ETF (DBB) fell nearly 5 percent YTD after climbed more than 30 percent in 2017, outperformed the S&P by a wide margin.  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 DBB.

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 – PowerShares DB Base Metals ETF (weekly)

Our “U.S. Market Trading Map” painted DBB bars in red (sell) – see area ‘A’ in the chart.  Over the past few weeks, DBB has been trending lower in a short-term corrective mode after the late December 2017 rally ran out of steam near the 61.8% Fibonacci retracement of the 2011 to 2016 major downswing.  This week’s selloff pushed DBB…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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