This Is The Next Trade On My Watchlist
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ETF Trade Watch
Well, no one said trading would be easy, and in this kind of market, its that much harder to trade. A market where we are largely trading sideways and where the gains or losses of the previous day are often given back by the time market opens or closes the next day. Without much direction, it is harder than normal to figure out where we are going to see some fallow through.
In the pre-market, all the major indexes are looking relatively flat from yesterdays close. The S&P 500 is cruising just under 4,000, while the Dow is up to 32,700 or so. This indecision of the market, or the choppiness of it, is not where directional traders like us want to be.
However, despite this “chop,” we do have one trade that is on watch for my Smart Trades service. Let’s take a quick look…
Energy Select Sector SPDR ETF (XLE)
We are watching this because the ETF has had somewhat of a weak week, as the price of oil and natural gas also remains pretty stagnant. Oil slipped on Wednesday, giving up an earlier gain, as signs of ample supply and rising U.S. crude inventories countered hopes for higher demand arising from a jump in manufacturing in top crude importer China.
U.S. oil inventories rose by 6.2 million barrels in the week ended Feb. 24, according to market sources citing American Petroleum Institute (API) data.
Given oil’s weakness, and the week the XLE has had, we are watching a very important level of support. If this support level is broken, we ca reasonably assume that lower prices are imminent.
Check out the full video breakdown below. If you want to know just how we are playing this setup, then be sure to join Smart Trades today!
My Smart Trades options trading service 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!
I look forward to trading with you, but until then, as always…
