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Chipmakers contributed to the drop in the major indexes Monday.  The group was under selling pressure as fears they may get hit with tariffs.  After surging more than 36 percent in 2017, the VanEck Vectors Semiconductor ETF (SMH) fell 1.35 percent Monday to 105.24, bringing its YTD gains down to just over 7 percent while the S&P gained 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 SMH.

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 – VanEck Vectors Semiconductor ETF (weekly)

Our “U.S. Market Trading Map” painted SMH bars in red (sell) – see area ‘A’ in the chart.  The first dominant feature on the chart is the rising trend line starting in late 2015.  The second dominant feature of the chart is the triangle pattern since early 2018.   Over the past few weeks, the ETF has been trending lower in a short-term corrective mode after the late August rally ran out of steam near the 2018 falling trend line…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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