The world markets have been active this year so far!
Coming into 2024, as credit spreads were tightening (vs widening), and signaling ample liquidity in markets, we started seeing outperformance not only in the US market but internationally as well.
This included growth in both developed and emerging markets.
One of the sectors that should correlate and outperform in a global growth environment (and underperform in contractions) is the Industrials (XLI). check out the chart below:
After developed and emerging markets retraced around late March to mid April 2024, momentum started coming back in, with Industrials correlating and starting to outperform as well.
Traders in our Inner Circle can see within the Market Rover dashboard that Industrials are confirming a longer term uptrend (green), and with the software recently signaling a potential “trade” idea within the trend on May 7th, 2024.
If global markets continue to show strength, Industrials (XLI) should outperform.
A few near term XLI “trade” idea targets might be a potential Target-1(T1) area of around $128.00, a Target-2 (T2) area of around $130.56, with a stop loss noted below (dot) around the $121.78 level.
Then, let’s keep an eye on world markets to see if this trend keeps holding throughout the summer.
Market Rover might be tipping off our Inner Circle traders about more opportunities in the near future.
Happy Trading!
Serge & JB
