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Options Trading Wealthpop News

Looking For Sector ETFs To Trade, Check These 2 Out


ETF Trade Watch

The market trekked higher yesterday as most sectors in the market finished in the green. This is all to be taken with a fair amount of salt as we have an FOMC meeting taking place on Wednesday. This could fuel a further rally, but it also has the power to derail it should the Fed be more hawkish than the market is expecting. Beware of this event taking place when putting on any trades and tighten up your risk management.

Materials Select Sector SPDR ETF (XLB)

As for some ETFs to keep an eye on, the first of which is the Materials Sector, as represented by the Materials Select Sector SPDR ETF (XLB). Some of the individual names that should be on watch when talking out the XLB are, Linde PLC (LIN), Air Products & Chemicals Inc. (APD), and Freeport-McMoRan (FCX), which has seen a lot of positive momentum on the back of climbing precious metals prices.

iShares Russell 2000 ETF (IWM)

Over the past three months, the IWM has posted a modest 4% return while the market has posted just over 5% over the same period. This ETF has holdings of smaller companies like Halozyme Therapeutics (HALO), Crocs (CROX), and Shockwave Medical (SWAV). If the market continues to push, watch this ETF to trail behind the rest of the market, but trend mostly in the same direction.

If you want to join my students and I as we learn how to look at sector ETFs for our trades then you’ll want to become a member of my Smart Trades options trading service. Not only will you get all my trades, but you’ll also be a part of a growing community of like-minded traders looking to learn and hone their options trading skills.

I look forward to trading with you, but until then, as always…

Good Luck!

Christian Tharp, CMT

Christian Tharp

I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group. My Chartered Market Technician (CMT) designation substantiates me as an expert in areas such as the technical analysis of stock trends, market indicators, cycles, price patterns, Elliot Wave principles, Candlestick charting, analyzing financial trends and behaviors, portfolio strategies, and forecasting future price movements. With my straightforward approach to simple, systematic trading, students learn how to strategically assess buy signals and market entry timing, establishment and management of stop losses, and how to employ a simple and disciplined trading approach that creates profits.

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