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One of the noteworthy developments in recent days has been the move in materials.  The group was under selling pressure in recent days on worries that other countries could retaliate by implementing their own tariffs on U.S.-made goods and sparking a trade war.  The Materials Select Sector SPDR ETF (XLB) fell more than 3 percent so far this week.  Now the question is whether recent selloff is a pause that refreshes or it’s a beginning of something worse?  Below is an update look at a trade in XLB.

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 – Materials Select Sector SPDR ETF (weekly)

Our “U.S. Market Trading Map” painted XLB bars in red (sell) – see area ‘A’ in the chart.  Over the past few weeks, XLB has been trending higher in a counter-trend rally after the early February massive selloff found support near the 50-week moving average. There is a distinct possibility that a bear flag formation is currently setting up in the weekly chart of XLB…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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