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

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.


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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Sara Eisen

Sara Eisen joined CNBC in December 2013 as a correspondent, focusing on the global consumer. She is co-anchor of the 10AM ET hour of CNBC's "Squawk on the Street" (M-F, 9AM-11AM ET), broadcast from Post 9 at the New York Stock Exchange.

In March 2018, Eisen was named co-anchor of CNBC's "Power Lunch" (M-F, 1PM-3PM ET), which broadcasts from CNBC Global Headquarters in Englewood Cliffs, N.J.

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