Trading Strategy – SPDR S&P Dividend ETF

One of the more noteworthy developments in recent days has been the move in dividend stocks.  The group is continuing its strong 2017 performance with a healthy start in this first week of the last quarter of the year. The SPDR S&P Dividend ETF (SDY) has risen more than 7 percent YTD, trailing the S&P, which is up over 13 percent.  Now the question is whether the rally has more legs?  Below is an update look at a trade in SDY.

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.  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 – SPDR S&P Dividend ETF (daily)

Our “U.S. Market Trading Map” painted SDY bars in bright green (strong buy).  The first dominant feature on the chart is the rising trend starting early 2016.  The second dominant feature of the chart is the sideways consolidation between 87 and 90 since early 2017, which represented an orderly high-level consolidation period.  The late September rally pushed the ETF above the summer highs, signify…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.


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