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One of the noteworthy developments in recent days has been the move in bank stocks. The group attracted some buying interest in recent days as traders looked past the trade wars concerns and positioned for higher interest rate environment.  The iShares US Financial Services ETF (IYG) jumped 0.96 percent Thursday to 132.31, bringing its MTD gain up to 1 percent, slightly outperformed the S&P.  Now the question is whether the rally has more legs?  Below is an update look at a trade in IYG.

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 IYG bars in red (sell) – see area ‘A’ in the chart.  Over the past few months, IYG has been trending lower in a medium-term corrective mode after the early February rally attempt ran out of steam just below the late January high.  The late March selloff pushed the ETF below the 20-week moving average, the level that offered support since IYG broke out in late 2016…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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