Industrial stocks also took off like rockets in Thursday trading session with the Industrial Select Sector SPDR (XLI) broke above the weekly pivot high of 37.22. The characteristic of the rebound is bullish and should continue support further uptrend. Terex Corp (TEX) is a global farm and construction machinery manufacturer and current pick in the “Swing Trader Bulletin”. The stock outperformed in Thursday trading session, jumped more than 6% on heavy volume to 35.53. In fact, a closer look at the daily chart suggested that TEX could climb above 41 and test the 38.2% Fibonacci retracement after the downtrend halted. Just so that you know, initially profiled in our January 10, 2011 “Swing Trader Bulletin” TEX had gained about 24 percents and remained well position.
The graphic below is from our “U.S. Market ETF Trading Map”, which shows the near-term technical bias for TEX. As shown, the underlying is in a short-term bullish trend when the price bars are in green. The underlying is in a short-term bearish trend when the price bars are in red. And 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).
Chart 1.1 – Terex Corp (daily)
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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