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Defensive stocks were under tremendous selling pressure as the yield on the benchmark 10-year Treasury note inched higher to 2.94 percent.  Higher interest rates tend to make high-dividend yielders less attractive versus the relative stability of high-quality bonds.  The Utilities Select Sector SPDR ETF (XLU) fell 3 percent for the week, bringing its YTD lost to 7.6%, underperformed the S&P by a wide margin.  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 XLU.

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 – Utilities Select Sector SPDR ETF (weekly)

Our “U.S. Market Trading Map” painted XLU bars in red (sell) – see area ‘A’ in the chart. XLU has been trapped within the confines of the 2-year and 4-year moving averages after the late 2017 selloff found support near 47. In fact, trading actions over the past months represents an orderly low level consolidation period…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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