Stocks

Do You Agree With Todd Gordon On The SPDR ETF, XLC???

The Communication Services Select Sector SPDR ETF, XLC seeks to provide precise exposure to companies from the media, retailing, and software & services industries in the U.S.  Launched in June of 2018, XLC was created in response to this year’s changes in the Global Industry Classification Standard, the sector benchmarking system used by many indexers to classify thousands of stocks worldwide.

The top holdings include:

Source

Todd Gordon, founder of TradingAnalysis.com, says resistance in the broader market could exacerbate weakness in the sector.

“We have a series of three tops right around $280 in the SPY, 2,800 in the S&P 500. I think that is going to be a source of resistance so we have resistance in the broader market,” Gordon told CNBC’s “Trading Nation” on Tuesday. “Back to XLC, this product I think has been underperforming on the bounce back. So, with the idea that we are facing resistance in the broader market, I think it’s going to make sense to hedge.”

“Provided we stay under $47, we should be able to move down to the $43.75 area right there. So this is the whole move that I’m really looking for, just a little bit of a pushdown,” said Gordon.

Source

So is Todd Gordon right, lets go to the charts to find out?

Weekly Chart (Curve Timeframe) – weekly high is at $52 and weekly low is at $38.

Daily Chart (Trend Timeframe) – the trend is up.

Todd Gordon level are within a range where there was a lot of trading. I personally don’t like trading in the middle unless I’m joining the trend. Thus, the chart suggest to short XLC if price makes it to the daily supply at $49.50.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

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