Looking For Sector ETFs To Trade, Check These 2 Out
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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…
