Trading Strategy – SPDR S&P Retail ETF

 
One of the more noteworthy developments in recent days has been the move in retailers.  The SPDR S&P Retail ETF (XRT) fell nearly 4 percent last week and more than 9 percent YTD, trailing the S&P by more than 23 percent.  Now the question is whether the selloff has more legs?  In fact, according to our “U.S. Market Trading Map”, last week’ selloff indicated a bearish reversal. Below is an update look at a trade in the XRT.

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 – SPDR S&P Retail ETF (weekly)

Our “U.S. Market Trading Map” painted XRT bar in red (sell).  After a strong run of outperformance, XRT peaked in early 2015 at 51.25.  The ETF rolled over and never looked back.  The late August rally tested resistance at the 50-period moving average.  Last week’s bearish engulfing bar suggested…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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