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One of the more noteworthy developments in recent days has been the move in telecoms. After a strong run of outperformance since mid-November, the iShares Dow Jones US Telecom ETF (IYZ) rolled over Tuesday, fell 2.16 percent to 29.49, bringing its YTD lost to more than 14 percent, underperformed the S&P by a wide margin. Now the question is whether recent pullback is a pause that refreshes or it’s a beginning of something worse? Below is an update look at a trade in IYZ.

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 – the iShares Dow Jones US Telecom ETF (daily)

Our “U.S. Market Trading Map” painted IYZ bar in red (sell) – see area ‘A’ in the chart. Tuesday’s massive selloff pushed the ETF below the 50-day moving average. That level was significant when the ETF climbed above it last week. This is a bearish development, 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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