The Materials Select Sector Index ETF (XLB) is now up 7 days in a row to a declining 50 day average ($36.60) that should act as resistance after 7 consecutive up days. To boot, the $36.50 level has acted as support for the XLB for a very long time, and when it broke it in October it led to a free-fall days later. Now it is re-testing that level which should act as resistance. I consider this a decent risk reward trade for those who like to short at resistance levels after multiple consecutive up days. SMN is the 2x inverse basic materials ETF.
Disclosure: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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A Basic Short In A Material World..
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