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One of the noteworthy developments in recent days has been the move in materials stocks. After an impressive ran that saw the Materials Select Sector SPDR ETF (XLB) surged more than 21 percent in 2017, the ETF had been under selling pressure in recent months, down 2.7 percent YTD, as alarm bells rang over a potential trade war with China.  Now the question is whether recent selloff is a pause that refreshes or it’s a beginning of something worse?  Below is an update look at a trade in XLB.

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 – Materials Select Sector SPDR ETF (weekly)

Our “U.S. Market Trading Map” painted XLB bars in green (sell) – see area ‘A’ in the chart. The first dominant feature on the chart is the rising trend started in early 2016.  The second dominant feature of the chart is the downward trend started in late January 2018.   XLB briefly broke below the 4-year moving average before buyers stepped in and pushed the ETF above key technical level, based on moving averages…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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