Tag Archives: Consumer Discretionary SPDR ETF

Trading Strategy – Consumer Discretionary SPDR ETF

 
What a difference a couple of weeks make. After hitting an all-time high in early June at 92.42, the Consumer Discretionary SPDR ETF (XLY) shares have collapsed more than 20 percent amid valuation concerns. Now the question is whether this is a pause to refresh or it’s a beginning of something worse. Technically speaking, a 20 percent decline from an all-time high the technical definition of a bear market move. According to our “U.S. Market Trading Map” there could be more pains ahead for the ETF. 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. The yellow bars identify period of neutral or sideways trading pattern. Additionally, the light-blue shading represents the short-term trading range. A move above or below that range is considered overbought (as represents by the red shading) or oversold (as represents by the dark-green shading). Readings above or below the red and green shaded areas are considered extremely overbought or extremely oversold.

ConsumerDiscretionaryETF_20170711

Chart 1.2 – Consumer Discretionary SPDR ETF (daily)

Our “U.S. Market Trading Map” painted XLY bars in red (strong sell). There is a consolidation near the 23.6% Fibonacci retracement, which represents the digestion period in the after math of the June massive selloff. Money Flow measure is below the zero line, indicating…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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