AMEX:XLY   SPDR Select Sector Fund - Consumer Discretionary
The more I make these posts, you will see how much I enjoy investing and swing trading Sector Select SPDR ETFs. Besides Financials ( XLF ) and Energy ( XLE ), the Consumer Discretionary ( XLY ) industries are great places to be situated in during a rebound in the economy. With interest rates projected to rise, many have come to believe that inflation has risen above its short - term target thus signaling rapid economic growth. As someone who works part - time and is in school Full - Time, it is hard to thoroughly perform TA and FA for the "top" stocks. That's why I enjoy rotating my money in and out of the sector ETFs.

When the market aggressively sold off, I started an initial position in XLY with intention to aggressively add to my position once I see some consolidation in the sector and a breakout to the upside with heavy volume . XLY holds stocks such as #AMZN, #TSLA, #LVS, #RCL, #LOW and #MCD just to name a few. I absolutely love the diversification of XLY as it gives the investor exposure to big tech, restaurants, travel, retail, and automotive - industries that are sensitive to interest rates and movements in the economy. I am fairly bullish on XLY as I am bullish on a full US economic recovery within the next year. With a very good move to the upside on March 9th, things are looking bright for XLY with parts of Canada and the United States preparing themselves for reopenings and vaccinations across the nation. The reopenings and hopefully mass vaccinations will yield an increase in store shopping and travel.

As I mentioned, it is hard for me - a student and an employee - to analyze what stocks to trade. Rotating in and out of the SPDR ETFs gives me the ability to do more research on the industry or industries that I want to be exposed to while being able to buy 30 - 200 stocks without having to do research on each stock or paying an enormous amount of commissions and grants me the ability to really only spend time reading reports issued by SPDR ETFs and the industry. Currently my ETF holdings are: XLE , XLF , XLB (Materials), XLI ( Industrials ) and XLY with the intention to add to my position and possibly starting a position in XLRE (Real Estate).

As an inspiring Investment Advisor, I am not too caught up with the whole Reddit craze due to the riskiness of it. As a result, I prefer to diversify myself via SPDR ETFs while trading 3x ETFs and inverse ETFs which provides me with enough volatility to produce a steady daily return.

Comments