Trading Strategy – Industrial ETF

Stocks closed higher across the board in narrow trading Monday. Among key S&P sectors, materials and industrials gained, while consumer discretionary slipped.  Below is an updated look at a trade in the Industrial Select Sector SPDR (XLI).  The ETF had outperformed the market in recent days and is at an interesting spot.

The graphic below is from our “U.S. Market ETF Trading Map”, which show the near-term technical bias and trading ranges for XLI.  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.  The yellow bars identify period of neutral or sideways trading pattern.  Additionally, the light-blue shading represents the short-term trading range.  A move above or below that range is considered overbought (as represents by the red shading) or oversold (as represents by the dark-green shading).  Readings above or below the red and green shaded areas are considered extremely overbought or extremely oversold.

Chart 1.1 – Industrial Select Sector SPDR (daily)

As indicated in the above chart, our “U.S. Market ETF Trading Map” was looking at XLI from a Buy side back in November 16, 2012.

Click here to read a detail technical analysis.

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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