Consumer discretionary sector obliterates competition this year
The consumer discretionary sector’s outperformance relative to the S&P 500 jumps of the page as the longest and strongest sustained Go Trend of all S&P sectors this year. We need to see the price action to better understand what is happening.
Below is the daily GoNoGo chart of the consumer discretionary sector ETF, $XLY. Compared to an $SPY chart which shows the broad U.S. equity market valiantly trying to make new highs, the consumer discretionary sector has obliterated it’s own prior highs and has been surging to new levels of uncharted price territory for over a month now.
You will notice several trading days when the GoNoGo Oscillator® (bottom panel) has bounced off the zero-line. Each of these highlights low-risk entry points for investors looking to join the trend and we can see how momentum has barely dipped into negative territory during the entire period.
Below is the daily GoNoGo chart of the consumer discretionary sector ETF, $XLY. Compared to an $SPY chart which shows the broad U.S. equity market valiantly trying to make new highs, the consumer discretionary sector has obliterated it’s own prior highs and has been surging to new levels of uncharted price territory for over a month now.
You will notice several trading days when the GoNoGo Oscillator® (bottom panel) has bounced off the zero-line. Each of these highlights low-risk entry points for investors looking to join the trend and we can see how momentum has barely dipped into negative territory during the entire period.