Industrial stocks traded up on Thursday following headlines that suggested senior officials from the U.S. and China appear headed for new discussions on trade matters. After surging nearly 22 percent in 2017, the Industrial Select Sector SPDR ETF (XLI) rose merely 4 percent YTD while the S&P gained over 8 percent over the same period. Now the question is whether recent pullback is a pause that refreshes or it’s a beginning of a something worse? Below is an update look at a trade in XLI.
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 – Industrial Select Sector SPDR ETF (weekly)
Our “U.S. Market Trading Map” painted XLI bars in green (buy) – see area ‘A’ in the chart. The first dominant feature on the chart is the rising trend line starting in early 2016. The second dominant feature of the chart is the sideways trend since early 2018. The June selloff held support at the prior low set in May 2018…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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