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Consumer Discretionary (XLY) vs Consumer Staples (XLP), compared to the SPX, looks to be presenting a topping or continued ranging pattern in the SPX. Trend shows that XLP will continue trading higher until mid-October possibly more of a risk-off market. Once the US Mid-term election takes place maybe the markets attitude becomes more decisive.
Welcome! Today we'll have a look at an interesting development in the S&P500, as well as look back at some past history making events.
First up, I'm not predicting anything. I'm not in the business of predictions because it's a fools errand. I trade what happens, and until something happens all of this is academic. However, I am in the business of making money,...
... for a .40 credit.
Notes: Another "not a penny more" short put with a resulting cost basis of 51.60/share if assigned. As with my XLU and HYG not a penny mores (See Posts Below), will look to roll "as is" for a credit on at least a quarterly basis until assigned or that's no longer productive. Current yield of 2.99%; $178 annualized on a one lot ... .
Episode 8/11: US (SPX) Sectors Technical Analysis Series - 18th of July 2019
Brief Explanation of the chart:
XLP: Consumer Staples has relatively been one of the worst performing sectors since the last recession. However, recently due to the many uncertainties in the economy(US/CHINA Trade relations), staples have performed quite well (+18.1% for 2019 so...
I heard some interesting commentary this week from the pros about watching for signs in the cyclical:defensive sector ratio.
I put together this chart using (XLK+XLI+XLB)/(XLP+XLU+XLV).
It is a composite of tech, industrials and materials indexes as a ratio to staples, utils and health sector indexes.
The chart ratio is about 1:1 right now.
In a late stage...
XLP has bounced off the 200MA. The last two moves pushed slightly through it, like this one, and the subsequent ramp was at least to the previous high (Feb-Mar) if not higher (Jan). The 2018 price/action below the MA shows this stock does take that indicator into account.
The recovery looks to be finishing the final sub-wave of W3. March shows a slight pullback,...
Sector rotation is an important part of my studies and October clearly points out to a broken market structure. Consumer staples sector surperformance compare to the index (SP500) does not bold well for the market in general. Not only this sector (along with utilities) did beat the SP500 in October, it actually came out with a positive return. That could means...
Consumer Staples (usually a defensive investment) are taking precedence over Consumer Discretionary (usually aggressive posture, when all is well) in October. We are pressing lower and showing the largest drop in a while. This is potentially a leading indicator of some kind of slowdown coming.