2 Sectors With Growing Strength
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– ETF Watchlist –
Today, we are going to be looking at two of the trades we are looking at taking in the Smart Trades trading community. These trades follow in line with our simple style of trading, looking for strength and finding clear levels that the ETFs look poised to break through.
The trades on watch today come from the industrials sector and the regional banking sector ETFs. Both with very clear, straight forward setups that are very obvious to any trader paying attention to these charts. Let’s get right into it.
Industrial Select Sector SPDR ETF (XLI)
Industrials had a very nice day yesterday as they led the market higher for another strong session for stocks. Pulling up the chart for XLI, the level to beat is that 104 level. A clear break and hold above this level could mean the price continues to move higher.
If the market continues to show the same strength it has been over the past several trading sessions, we expect a nice performance from the industrials sector, led by stocks like Caterpillar (CAT) and Deere (DE). Keep this sector and this ETF on watch for a trade to the upside, price action willing.
SPDR S&P Regional Banking ETF (KRE)
Another sector we have on watch in Smart Trades is another financial sector ETF, only this time from the battered regional banking ETF, KRE. The level to take here is 45. If that level can be broken on strength from the ETFs underlying holdings, then we could be in for some decent recovery for this fund.
Also, as a special note, compare the chart from our trade idea on Schwab (SCHW) notice anything in particular about the two charts?
Join my Smart Trades options trading service today to see exactly how my students and I trade these types of scenarios! Smart Trades is where I teach my students how I trade options on some of the largest ETFs on the exchange. As you learn, you’ll get exclusive access to all my trades with notifications any time one is put on. Now, you can learn how many use this high-income skill to achieve financial freedom. Join today and as always…
