Trade ideas
XLP - Heading Down To CenterlineIf the last highs to the left wont hold, price will meet the centerline.
From there, a reversal is very possible.
Interestingly the neon-blue ray points to the CL too (kinda Wolfe-Wave thing).
Hunting for a long.
P!
XLP Skew - Bullish SentimentXLP Skew - Bullish Sentiment
XLPSubmit 52.31-0.02 (0.0%)SPDR Consumer Staples Select
Traders are willing to offer downside puts at more attractive levels relative to upside calls. The implied volatility of the downside puts is trading at a +32.7% premium to upside calls compared to the 52 week average of +36.7%. This indicates traders are feeling a move to upside or volatility to the upside is increasing demanding less premium to sell puts vs calls. After looking at the options chain marketchameleon.com and not seeing anything in the options to do, I think I may buy the ETF that yields 1.8% and has a good history of making and raising the dividend. marketchameleon.com
XLP - weekly at trendline, watch weakness.Surprisingly, during the rise in 2016 in the general market, defensive sectors like Utilities and Consumer staples were bid up, in search of yield and dividends. If the Treasury Yield goes UP, or any rate hike actually happens, some funds and big investors will move out of stocks ( even defensive ones such as XLP or XLU ).
Watch major support ( weekly ) around 52.00 USD.
XLP is posed to underperform in 2016this a sector view
im dividing XLP to SPY and I get a ratio chart, showing if a sector is outperforming or down performing.
I think 2016 we will see onr of the leaders (XLP) becoming an underperformer.
Risk Off - are we looking at the market top?This is the ratio chart between XLP to SPY. XLP is the Consumer Staples. It looks like money is going to safer consumer stocks.
Gap needs filled Ide imagine we see a gap fill after it gains support a red line , maybe forms a light volumed right shoulder. Cant wait to see!!!!
MACRO VIEW: XLP IN FIRM MACRO UPTRENDConsumer Staples SPDR ETF is looking good on both short term and long term basis.
On long term basis - XLP trades in both 5 and 10 year uptrend, as the price stands firmly above 1st upper standard deviations from both 5 and 10 year means It has tested its 5-year trend during the august selloff and held it successfully.
On short term basis - XLP shows no trends in particular, as the price is firmly within the 1st standard deviations from 1-year and quarterly means. It is a positive development, since nothing on short term basis stands in the way of long term trends.
Even Selling Pressure - INDEX and SectorMarks its extreme Oversold Levels. Will wait for triggers.
There are some fat premium stocks that can be good for spread selling.
As far as indices, Premium selling is not bad idea, essentially this would be a directional trade. Consider RTM (Reversion to the mean) i.e., The Momo Oscillator goes back to its mean.
This is an indicator that someone will pack it and sell eventually. Watch out.
