XLY has rallied to and thru previous support on decreasing volume. It is currently oversold and retesting the previous swing high.
The main holdings in XLY are:
- Amazon
-Tesla
(these two make up over 35%)
-Home Depot
-Nike
-McDonald's
-Lowes
-Starbucks
-Target
-Booking
-TJX
Consumer disposable income is hovering around the Jan 2020 lows (fred.stlouisfed.org...
... for a 2.24 debit.
Comments: Taking profit here ... . Filled for a 4.02 credit (See Post Below). Closing it out today for 2.24 results in a 1.78 ($178) profit.
... for a 4.02 credit.
Comments: At the top of my exchange-traded fund list for implied volatility rank at 92 with a 39-day of 39.8%. Selling the 17's on both sides. 4.02 credit on buying power effect of 17.73; 22.7% ROC at max; 11.3% at 50% max.
It has maintained overperformance over the consumer discretionary sector (represented by XLY) but has lost some of its relative strength against it.
It appears that the extra alpha and extreme overperformance is going to be back on SONO 's side based on the chart bottom chart where the relative strength is hitting a level that usually would result in a bounce...
The Discretionary vs Staples ratio (captured via the $XLY and $XLP etf's) serves as one of many proxies for a potential "Risk Off" signal. While it had been "Risk On" for a number of months, the evidence is mounting that the trend has reversed and market participants are now moving towards more defense and less offense. Be cautious of a sudden and crowded rush...
XLY top weighted stocks : Tesla, HD, Amazon, MCD ..
Showing STRENGTH relative to SPY with bullish breakout of pennant and breakout of the recent down trend line....
While Apple and Microsoft are turning down, Tesla has been strong grinding it's way to over $800 and appears to be headed for ATH's next...
It will be interesting to see if we get a big breakout...
XLY Consumer Discretionary SPDR ETF saw a buyer of the 12/17 187C for $2.5M in premium last week
Top holdings are AMAZON and TESLA. I like both these stocks from a technical perspective and a "cheaper" trade would be to go long XLY :) (Higher premiums on AMZN and TSLA).
From a technical perspective XLY has bullish Momo and a strong close above 21EMA. Looking...
Energy (XLE) topped the sector list this week after the OPEC Monthly Report on Monday projected that demand for oil would exceed pre-pandemic levels by next year. The sector also got a boost from Crude Oil Inventories data released on Wednesday that showed much higher demand than expected.
Consumer Discretionary (XLY) moved into second place after great Retail...
All sectors declined this week as the S&P 500 pulled back from all-time highs. Consumer Discretionary (XLY) was poised to end the week with gains before losing those gains in Friday afternoon selling.
Real Estate (XLRE) was the worst-performing sector of the week after outperforming the market in the previous week. The sector erased all of last week's 4% gain as...
Materials (XLB) was the top sector of the week as manufacturing and core durable goods data showed increase demand and was confirmed in consumer spending numbers. The growth in the sector was matched by increased prices in metal commodities required to support economic expansion.
Energy (XLE) started the week strong and led several days throughout the week, but...
Utilities (XLU) dropped to the bottom of the sector list after leading in the previous week. It was all about Growth stocks this week as investors put off fears of the economy and looked forward to record earnings reports from big tech.
Communication Services (XLC) led the week thanks to huge earnings beat by SNAP and Twitter. Consumer Discretionary (XLY) and...
It was a volatile week in the indexes and the sector list as investors rotated on the Fed's new hawkish stance toward inflation. Energy (XLE) led early in the week, but Technology (XLK) topped the list by the end of the week, ending the week as the only sector to hold onto gains.
In second place was Consumer Discretionary (XLY). Growth stocks remained strong...
It was a mix of defensive sectors and growth stocks at the top of the sector list this week, while the cyclical sectors took a step back.
Real Estate (XLRE) led the sector list, continuing to gain on a solid housing market, higher rents, as well as a defense against potential inflation.
Health Care (XLV) also rallied this week, ending the week in second place...
Energy (XLE) and Real Estate (XLRE) led the sector list for the week, establishing their lead early in the week. Energy got a boost from the rise in oil prices on high demand. Real Estate is gathering momentum from rising housing and rental prices while also being a great hedge against inflation.
The focus on employment data released on Friday morning is clear in...
A RISING WEDGE IN TIDE RANGE BROKE UPSIDE. TARGET IS $233 WOULD BE A GREAT PLACE TO SHORT FOR A GOOD RR, SINCE A NICE PULL BACK DUE ALREADY. IT SHOULD PLAY OUR VERY WELL. ST: $235
Discretionary vs. Staples = Economy Bullish / Economy Bearish
Ratio rising = Discretionary > Staples
Ratio falling = Discretionary < Staples
Often a leading indicator of the 10yr yield (TNX)
Will continue to track this potential new signal.
Growth sectors stole the show this week as investors put inflation worries aside and boosted Communications (XLC) and Technology (XLK) early in the week. The focus was on the growth sectors from Monday to Wednesday. Technology faded back in the list, buy Consumer Discretionary (XLY) joined Communications to end the week at the top of the list.
On Thursday, there...
