One of the noteworthy developments in recent days has been the move in tech stocks. The group posted their second straight day of steep losses. On Thursday, the sector dropped more than 1.5 percent as Facebook (FB) posted its worst day ever. Shares of Intel (INTC) and Twitter (TWTR) dragged the sector lower on Friday, falling 8.59 percent and 20.54 percent respectively after the release of their latest quarterly results. The Technology Select Sector SPDR ETF (XLK) fell 1.7 percent Friday, bringing its YTD gains down to 12.4 percent. 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 XLK.
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 – Technology Select Sector SPDR ETF (weekly)
Our “U.S. Market Trading Map” painted XLK bars in red (sell) – see area ‘A’ in the chart. After a strong run of outperformance since early 2016, XLK climbed above 74 before seller stepped in and pushed prices lower. In accordance to the Japanese candlestick pattern recognition, last week’s massive bearish shooting star…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.
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