This Sector is Under Pressure

Of course, the consumer discretionary sector isn’t alone when it comes to rough performance over the last 18 months. [Jeff Clark's Market Minute]( This Sector is Under Pressure By Imre Gams, analyst, Market Minute The iShares Consumer Discretionary ETF (IYC) has been under pressure since November 2021. IYC is currently down over 26% from its 2021 highs. Of course, the consumer discretionary sector isn’t alone when it comes to rough performance over the last 18 months. But unlike some other sectors that have outperformed, like semiconductors, consumer discretionary stocks still look like they’re in for more pain. Recommended Link [“One-Stock Millionaire” Trades ONE Stock for 3 Decades… Wins In Any Market]( [image]( Jeff Clark here… I’ve joined the ranks of the top 1% of wealthy Americans… by IGNORING 99% of the entire stock market. Among 6,000 different stocks on the market to choose from… Hides ONE incredibly special stock. I call it, [“The One-Stock Retirement”]( because I’ve used it for over 3-decades (through ANY market) closing huge gains – time and time again. Trading this ONE stock over and over again is changing the lives of everyday folks across the world – from school teachers to doctors. You do not need trading experience and you can [get started with only $100!]( [Click Here to Learn More About My Secret.]( -- Let me walk you through a daily timeframe chart of IYC so I can show you the bearish setup that’s currently in the works. [(Click here to expand image)]( There are two key features to this price chart. - IYC is currently trading within the boundary lines of a larger triangle pattern (the blue lines on the chart). Triangles are trend continuation setups. As we can see on the chart, IYC has been in a downtrend since late 2021. This means that after this triangle breaks out, IYC will likely resume its downward slide. - We have a cluster of important moving averages (MA) all trading tightly together. The MAs on the chart include the 20, 50, and 200-day. Whenever you have a cluster of MAs all trading sideways, it’s time to pay attention. This is usually when traders ignore a market because they think sideways action is boring. But that’s a mistake because it just means the market is building pressure and getting ready for its next big move. If IYC were to break below all three MAs, it would support the larger triangle pattern and increase the odds of a breakdown. There are a couple of ways to trade this pattern if the market starts breaking lower. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. An aggressive trader could look to establish a position if the support offered by the three MAs were to fail. This would eventually lead to the MAs sloping downwards instead of going sideways. On the other hand, a more conservative approach would mean waiting for the market to break out below the support line of the triangle pattern. Neither approach is necessarily better or worse than the other. It ultimately comes down to your individual risk tolerance and trading style. More aggressive traders do tend to stack up larger gains, but they’ll also often take on more losses as well. Conservative traders will likely see smaller average gains but will enjoy a higher win rate. That’s why when it comes to trading, it’s important to truly know yourself and know what will work for you. Happy trading, Imre Gams READER MAILBAG Are you an aggressive trader, or a conservative trader? Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com. IN CASE YOU MISSED IT… [A personal message from trader Larry Benedict]( Hi. Larry Benedict here. You’ve probably seen my name pop up a few times on emails lately. That’s because for Memorial Day, we are having a ridiculous sale on my financial research service, One Ticker Trader. It’s so crazy, it’s hard to believe anyone would intentionally pass it up. It’s $7... That’s for a full year, 12 months of trading insights. That’s 96% off our regular retail price of $199. And today is the last day to get this price. So, if you are looking to jump-start your financial future... I can help. And for just $7 for the whole year, you can’t afford to pass this up. The offer ends at midnight. 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