We are canceling the $XLK trade from Friday in favor of a bullish setup in the First Trust Financials AlphaDEX Fund ($FXO). $FXO has recently pulled back to the rising 50-day MA after stalling at the prior high. The 20-day EMA has just crossed above the 50-day MA, which is a positive sign, signaling that the current consolidation may be close to breaking out. This isn’t a guarantee, but the moving averages point to a positive shift in momentum over the past few weeks. The 200-day MA remains in a clear uptrend. We look for $FXO to chop around for a few more days or weeks above the 50-day MA, minus a few shakeout bars. As long as the price action holds above the 50-day MA, then it should eventually break the downtrend line and a move to new highs.

Continue Reading...
Follow us on Twitter

Latest Tweets