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Prep For A Move In Either Direction With These Sectors


ETF Trade Watch

The market is taking a bit of a pause as we chop around, waiting for trend and direction since starting this week considerably lower than where we were late last week. This means we are being extra patient until we have a good opportunity to put on high probability trades.

Since we are relatively flat today, there are two ways you can play the market.

Vanguard Communication Services ETF (VOX)

If the market were to continue its climb higher than an area that would likely be carrying much of the load would be the Communications Services Sector. This ETF has holdings in names such as Alphabet (GOOGL), Meta Platforms (META), and Verizon Communications (VZ).

Up 13% on the month, VOX has given back some ground over the past week. However, this could very well be a temporary pull back in the market after it’s impressive run. A pullback can very often turn into a retest of a previous resistance level, before moving higher. Be on the look out for this as the week develops.

Energy Select Sector SPDR ETF (XLE)

For those who are looking to go short, there’s riding with energy, which has been one of the preferred areas to be when the market slides.

Keeping an eye on oil prices is something you always want to do when planning to enter a trade on energy. While this sector usually rises on market weakness, it is more closely tethered to the price of oil rather than the overall market.

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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