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There won’t be a summer rate hike, so I’ll focus here: Trader

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Commodities are set to go up, so I'm looking at the XOP
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Is more pain in store for dollar?
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Will the market repeat the past?
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Trading Nation: Gold miners surge

Despite all signs from Fed Chair Janet Yellen that there will be an interest rate hike this summer, one trader insists the U.S. central bank is on hold, and that means good news for the commodities sector.

"You'll notice that after that disastrous 38,000 jobs added [in May], you saw big moves up in the commodities space and a move down in the dollar," Todd Gordon of TradingAnalysis.com told CNBC's "Trading Nation" on Monday. "That's reflecting the Fed sitting on the beach on their hands for the summer."

Gordon took a look at the market overall and identified the lead sectors kicking off the week on Monday. While the S&P 500 is up, he noted that the leading sectors in the marketplace appear to be industrials, materials and energy, with oil leading the way. Crude was up more than one percent midday.

The trend has Gordon willing to bet on the oil and gas production ETF (XOP) breaking through to new highs. More specifically, Gordon believes that the XOP is actually set to break above the $37 mark and has set $36.50 as the key level to watch for in the next coming days.


If the XOP does move to $36.50, Gordon predicts that oil will keep moving up.

"If we can get up to the $36.50 mark, it looks like XOP, along with crude oil, should be able to move up through the next several days," Gordon said.