Tag Archives: XLY

Trading Strategy – Consumer Discretionary SPDR

Stocks ended near their best levels Tuesday, recovering from their worst one-day drop in 2013, following Fed Chairman Ben Bernanke’s speech.

Most key S&P sectors ended in positive territory, led by materials and consumer discretionary, while financials ended lower.  As such, the Consumer Discretionary Select Sector SPDR (XLY) added 0.99% to 49.92.  Below is an updated look at a trade in XLY.

The graphic below is from our “U.S. Market ETF Trading Map”, which show the near-term technical bias and trading ranges for XLY and the S&P 500 index.  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 Discretionary Select Sector SPDR (daily)

As indicated in the above chart, our “U.S. Market ETF Trading Map” rates XLY as a Hold.  XLY is currently undergoing a short-term rebound after recent pullback found support just above 49.

Click here to read a detail technical analysis.

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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