Trading Strategy – Energy Select Sector SPDR ETF

One of the more noteworthy developments in recent days has been the move in energy stocks.  The Energy Select Sector SPDR ETF (XLE) has handily outperformed the broader market, rose 0.52 percent on Monday to close at 67.69.  The ETF however, lagged the S&P in 2017, down more than 10 percent.  The S&P is up more than 15 percent in YTD.  Now the question is whether recent rally has more legs? Below is an update look at a trade in XLE.

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 – Energy Select Sector SPDR ETF (daily)

Our “U.S. Market Trading Map” painted XLE bar in green (buy).  Over the past few weeks, XLE has been trending lower in a short-term corrective mode as it worked off overbought conditions.  The late September correction tested support at the 50-day moving average.  That level was significant when the ETF climbed above it in early September.  Monday’s upside follow-through confirmed…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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