3 Sectors To Trade If The Bull Market Stampedes
Share
– ETF Watchlist –
Well, as we thought, the market blew off some steam only to resume the path higher. Consumer discretionary and tech led the way, which you would expect to see in a rally, so that’s a good sign. The more defensive names, once again, settling toward the bottom of the barrel.
If this rally is continue on it’s path higher then we have a couple sectors we can look at. The first is the most obvious of the bunch, a run at the tech sector. The next, consumer discretionary, but the one we have been keeping an eye on for a little while, retail.
SPDR S&P Retail ETF (XRT)
The retail sector remains a tough cookie to crack, especially with the stubborn strength of the consumer. Much to the Feds dismay, spending remains on a hot streak with few signs of slowing down.
If the strength of the consumer continues, it could power names like Amazon (AMZN) and Walmart (WMT) to carry the ETF higher as well. Even despite inflation that refuses to take a meaningful dive lower, consumers are still shopping with their favorite brands. This bodes well for this sector going forward, especially after the market pulls back a bit.
If the rally shows it has legs, you may want to keep this sector on watch for a way to trade the sector’s strength to the upside. Remember, for these longer trades, entry is still going to be key. Don’t just decide you want to trade this and jump in, plan your entry so you can get as much of the upward move as possible and also give yourself the best risk management possible.
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…
