Welcome to Capital Essence

Sign up for a FREE MEMBERSHIP to read tons of free content. Take a 30-DAY Trial Offer to access premium research and trading strategy. Check out our Investment Blog for the latest trading/investment ideas. If you want to go beyond the latest numbers, our Market Outlook will tell you why the market does what it does and what it means for the next day’s trading.

 
Consumer staples stocks got hit hard Thursday as the sector is considered most sensitive to higher costs that likely would ensue from Trump’s tariffs on steel and aluminum imports from EU, Canada and Mexico.  The Consumer Staples Select Sector SPDR ETF (XLP) fell 1.6 percent to 49.66, down more than 12 percent YTD.  Now the question is whether recent selloff is a beginning of an end or there’re more pains ahead?  Below is an update look at a trade in XLP.

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 – Consumer Staples Select Sector SPDR ETF (weekly)

Our “U.S. Market Trading Map” painted XLP bars in red (sell) – see area ‘A’ in the chart.  Over the past few weeks, XLP has been basing sideways using the 23.6% Fibonacci retracement of the 2009 to 2018 major upswing as support.  There is a distinct possibility that a bearish flag formation is currently setting up in the weekly chart of XLP…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?

Subscribe to CEM News to receive more in-depth research from Capital Essence.

P.S. Take advantage of the 30 days special trial [new member only]. Join a small group of elite traders and receiving these daily trading ideas by click here to subscribe.

Archives

Translate this Page