While escalation in trade tensions between the U.S. and China weighed on risk assets, areas of the market considered safer traded up on the day. The Utilities Select Sector SPDR ETF (XLU), the so-called defensive sector, bucking the sharply negative tone of the overall market, up 0.90 percent to 52.49. Now the question is whether the rally has more legs? 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. After plunging more than 20 percent from multi-year high in late 2017, XLU found support at the 4-year moving average…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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