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One of the more noteworthy developments in recent days has been the move in defensive stocks.  After a lack luster 2017 that saw the Utilities Select Sector SPDR ETF (XLU) added just 8.5 percent, underperformed the S&P by a wide margin, the late January selloff pushed the ETF below its 2017 lows, down more than 7 percent YTD.  Now the question is whether this is a beginning of an end or there’ll be more pains ahead?  Below is an update look at a trade in XLU.

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 – Utilities Select Sector SPDR ETF (weekly)

Our “U.S. Market Trading Map” painted XLU bars in green (buy) – see area ‘A’ in the chart. The ETF had been under selling pressure in recent weeks after the latte 2017 rally ran out of steam just above 57.  The December correction tested support at the multi-year rising trend line.  This level was tested several times in the past few years.  This history indicated an important role in terms of support.  This week 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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