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One of the noteworthy developments in recent days has been the move in consumer discretionary stocks.  The group has been on a tear in recent days following report that confidence level among Americans reached an all-time high in April.  The Consumer Confidence Index rose to 128, surpassing the April estimate of 125.6. As per the Conference board, the confidence level has touched an 18-year high. Americans were optimistic about their finances and felt that cracking jobs has become comparatively easier.  The Consumer Discretionary Select Sector SPDR ETF (XLY) up 8 percent YTD, outperformed the S&P by a wide margin.  Now the question is whether the rally has more legs?  Below is an update look at a trade in XLY.

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 Discretionary Select Sector SPDR ETF (weekly)

Our “U.S. Market Trading Map” painted XLY bars in red (sell) – see area ‘A’ in the chart. Over the past few weeks, XLY has been trending higher after mid-March selloff retested and respected support at the early February lows…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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