Stocks tumbled more than 1 percent in early Thursday trading following Senate Majority Leader Harry Reid’s comment that a “fiscal cliff” deal may not be reached by the end of the year. The market however, staged a sharp recovery in the final hour of trading on news that the House of Representatives will reconvene on Sunday evening to resume talks.
Among key S&P sectors, materials and financials held small losses, while consumer staples turned higher. Below is an updated look at a trade in Consumer Staples Select Sector SPDR (XLP).
The graphic below is from our “U.S. Market ETF Trading Map”, which show the near-term technical bias and trading ranges for XLP. 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 – Consumer Staples Select Sector SPDR (daily)
As indicated in the above chart, our “U.S. Market ETF Trading Map” was looking at XLP from a Sell side back in December 11, 2012.
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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