Some of the themes seen through the first four months of 2017 have continued Thursday, the last trading day of May. The consumer staples sector, the sixth largest sector weight in the S&P, made another 52-week high and YTD is up nearly 10%. According to our “U.S. Market Trading Map”, there could be more gains ahead for the sector. Below is an update look at a trade in the Consumer Staples Select Sector SPDR ETF (XLP).
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.
Chart 1.2 – Consumer Staples Select Sector SPDR ETF (weekly)
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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