2 Sectors Putting Us On High Alert
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ETF Trade Watch
What the Smart Trades community looks for when searching for trades to put on is a trade that will we can be in for a week or two with the stock moving firmly in our favor. These are a little bit slower traders that we aren’t in an out of like a day trader would be.
Unfortunately, with the market moving like it has been for the past couple weeks, we haven’t had the environment we would like in order to put these types of trades on. We need to find sectors that have begun a trend in one direction or another then trade with the market.
SPDR Gold Shares (GLD)
One area of the market that has continued steady declines for the past month is gold. This could be the target of a short play as the metal seems to be losing a bit of that shine from the recent surge in prices.
Many are going long gold at this point with all the economic and geopolitical uncertainty out there, but we aren’t so sure of this rally maintaining its strenght for much longer. We could be wrong, which is why this is still on our watchlist for the breakdown of key levels.
VanEck Oil Services ETF (OIH)
If you listen to the experts in the energy sector, they’ll likely say that energy is where you want to be right now, even with the war in Ukraine continuing into its second year. Just last week I saw an article where renowned energy trader Mark Fisher called what could be coming for the sector as one of the best buying opportunities possibly of the next decade.
It could be hype, but it also could be true. Energy has been strong for the past couple years now, even with all the bottlenecking and inflation caused by economic turmoil and conflict in Europe. However, should energy live up to the past, we could also be in for another big year from this sector. Keep the energy play on your watchlist as the market decides where it wants to head next.
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I look forward to trading with you, but until then, as always…
