ENTRY 52.55 SL 52.88 TP1 51.57 TP2 50.97
higher timeframe shows shift in sentiment with strong momentum to the downside, potential location to join to new downtrend, as true for all my trend ideas: make sure to not take all off at your target and ride the trend if the idea was successfull.
Surprisingly, during the rise in 2016 in the general market, defensive sectors like Utilities and Consumer staples were bid up, in search of yield and dividends. If the Treasury Yield goes UP, or any rate hike actually happens, some funds and big investors will move out of stocks ( even defensive ones such as XLP or XLU ). Watch major support ( weekly ) around 52.00 USD.
Consumer Staples SPDR ETF is looking good on both short term and long term basis. On long term basis - XLP trades in both 5 and 10 year uptrend, as the price stands firmly above 1st upper standard deviations from both 5 and 10 year means It has tested its 5-year trend during the august selloff and held it successfully. On short term basis - XLP shows no trends...
$CHD looks like it's being trimmed on the up moves. See Excess Demand Supply signals. I will be trimming back and trailing up. Should not drop until the green "A" flips to a red "D". At that time (if other signals have not flipped green) Supply signals 1 thru 5 will be in alignment. Then I'll pull the trim trigger. Technical resistance above is at the $91 +/-...
The charts above show the performance of each sector relative to all nine sectors combined. XLK tech couldn't be included due to having only 8 panes but it was included in determining the sector ratios. Important to keep in mind that these are ratios, all prices could go lower or higher together but what I'm interested in here is purely the relative performance....
Seeing a great idea from our dear mod Technician, i decided to check this a bit more and see if there is any tight correlation. Going backwards i actually does show some correlation in 2011 and 2007. Whenever XLY/XLP changed a trend and/or showed divergence to the price action, the stock index would go down as well. The ration was good to be used to see the top...
A great indicator to determine the confidence (ie. risk appetite) of investors/speculators is the XLY/XLP ratio. XLY is the ETF for consumer discretionary stocks whereas XLP is the ETF for constumer staples stocks. In times of confidence, XLY should perform better than XLP because there is belief that the economy is doing well and that people will spend cash on...
Long Consumer Staples, Short Consumer Discretionary A defensive pair for major market correction at historical low level. The pair is breaking out from a four months correction. Expecting it to run back to 0.7, indirectly hinting for a potential S&P correction is coming.