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.