XLB Trade Idea

  • Posted by
  • on September 10th, 2012

XLB; The investment seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in The Materials Select Sector Index. The fund invests substantially all, but at least 95% of its assets in securities comprising the index. The index includes companies from the following industries: chemicals; metals & mining; paper & forest products; containers & packaging; and construction materials. It may invest in cash and cash equivalents or money market instruments, such as repurchase agreements and money market funds. The fund is non-diversified.

I’m looking at this play as a mean reversion type of idea in front of the FED meeting.

  • Currently up  4 days in a row-most ETF tend to stall after 3 to 4 consecutive up days.
  • Currently 100% of the stocks within the XLB are above their 10 day moving average
  • 96% are above their 50 day moving average
  • RSI2 95.61
  • SMN is the proshares double inverse ETF


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.


blog comments powered by Disqus