One of the noteworthy developments in recent days has been the move in consumer discretionary. The group was under selling pressure in recent days following Netflix Inc. (NFLX) disappointing second-quarter earnings reports. The Consumer Discretionary Select Sector SPDR ETF (XLY) fell 0.5 percent to 111.93, bringing its YTD gains down to just over 13 percent, outperformed the S&P by a wide margin. 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 XLY.
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 – Consumer Discretionary Select Sector SPDR ETF (weekly)
Our “U.S. Market Trading Map” painted XLY bars in red (sell) – see area ‘A’ in the chart. After a strong run of outperformance since early April, XLY peaked in early July and rolled over. Trading actions over the past couple of weeks represented an orderly high level consolidation…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?
Subscribe to CEM News to receive more in-depth research from Capital Essence.
P.S. Take advantage of the 30 days special trial [new member only]. Join a small group of elite traders and receiving these daily trading ideas by click here to subscribe.