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After the meteoric rise of the stock market on the back of the tech sector and the AI boom, it seems things are taking a bit of a breather. By the looks of things in Thursday’s session, that breather looks to be prolonging itself. So, where can traders look for a good trade to put on?
Well, today let’s take a look at a trade we currently have on in our Smart Trades trading service for a possible idea. Important to note that for those who were not apart of this trade or the service in where I announced it, you will want to be extra careful if you decide to make a similar trade as things in the market have shifted once again. Use caution, this is for educational purposes.
Industrial Select Sector SPDR ETF (XLI)
Our current trade on the XLI came as the stock broke out of a key area between 103-104, but not during the breakout. The break of this demand area was our clue to take notice of the trade in the first place. However, where we entered was on a retest of this zone.
Once price came back down to this level, we entered our trade to the upside with our stop loss set on the event that price broke down this area after the initial breakout. This is how you find success in trading. You figure out your edge and strategy, you find a stock or ETF that’s in play, you have the patience to wait for your entry, and then you execute once the time is right.
You may hit a winner and your analysis could be perfect or you could put on a loser, but risk management is king and will save you from
Watch the full video at WEALTHPOP.com