Tag Archives: Industrial Select Sector SPDR

Trading Strategy – Industrial Select Sector SPDR

Stocks rallied to finish near session highs Tuesday as traders expect mostly reassuring words from Chairman Bernanke at Wednesday’s press conference.

All key S&P sectors were in positive territory, led by industrials and telecoms.  As such, the Industrial Select Sector SPDR (XLI) added 1.18% to 44.16 amid outperformance in transportation and defensive stocks.  Below is an updated look at a trade in XLI.  The ETF had outperformed the market in recent days and is at an interesting spot.

The graphic below is from our “U.S. Market ETF Trading Map”, which show the near-term technical bias and trading ranges for XLI.  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 1.1 – Industrial Select Sector SPDR (daily)

As indicated in the above chart, our “U.S. Market ETF Trading Map” rates XLI as a Buy.  Over the past few days, XLI had been trending higher after the May correction tested and respected support at the trend channel moving average (as represents by the white line in the chart). Money Flow measure held firmly above the zero line throughout the May correction, indicating there was little selling interest…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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