AMEX:XLP regained its YTD and MTD anchored volume weighted average price, as well as the VWAP anchored to the 3/21/24 FOMC meeting. Momentum is turning sharply upward and most major moving averages are in a productive relationship to one another and price.
Additionally, XLP/SPX is showing a potential reversal toward relative strength. It's crossed above the MA...
XLP Potential Breakout Analysis
AMEX:XLP is showing signs of a potential breakout based on technical analysis. This could present a favorable opportunity to consider investing in the Consumer Staples sector.
Why Consumer Staples Sector?
The Consumer Staples sector is known for its stability and resilience during market fluctuations, making it an attractive...
Consumer staples sector, or in other words the companies we shop from on a daily. EX: COSTCO, WALMART, TARGET. This chart is prefect, this level is just so clear to see. We have multiple touches of this resistance/supply level, and we had one false breakout back in April 2022. How many times can a level be tested before it decides to breakout? We are back at this...
Macro Monday 28 – Discretionary Vs Staples
Today we are going to look at the following two very interesting SPDR Indexes and their relationship to one another to help us understand where the U.S. consumer is at present.
SPDR Select Sector Funds (“SPDE SSF”)
1. Consumer Discretionary SPDR Fund AMEX:XLY
2. Consumer Staples SPDR Fund AMEX:XLP
For reference...
The chart and fundamentals are too easy here, right? What am I missing?
Consumer Staples have been hit hard and I would own most of these companies during any time period. However, the market gave us a gift and it should be easy to capitalize. Going long here on pure fundamentals. On a technical basis, the chart looks good but keeping my eye on crossing the...
In parts one and two (linked) we discussed the construction and use of relative strength ratios (RS) in trading and analysis, common errors, and best practice. In part three we look at the consumer discretionary to consumer staples ratio and attempt to draw trading and economic insight from that analysis.
Any method used to analyze a single security price chart...
Defensive-value niches of the S&P 500 were not all that cheap back in the summer of 2022. Consumer Staples traded with a forward operating P/E north of 20 while the uninspiring and often-safe Utilities space briefly had an earnings multiple above 22. Real Estate, meanwhile, has endured steep absolute and relative selling over the last many quarters as the...
XLP has had horrific downside price action over the last several weeks.
As it approaches the Weekly 200 MA I do anticipate a bounce to occur.
Not many sectors are near the weekly 200 MA.
Buying this at the Weekly 200 MA has proven to be a great long term entry for investors.
If a bounce occurs and bearish consolidation on the weekly chart occurs, this...
This is part one of a series on relative strength ratios.
Part One:
Relative Strength Ratio (RS) analysis is used to compare one markets performance with that of another. The RS line provides a direct comparison of strength or weakness relative to the another. RS analysis is particularly useful for active institutional managers who are judged relative to a...
Staples price action has been sub par as of late with bearish consolidation occurring. This sector looks very fragile and I'm watching individual names for continued weakness.
XLP has based around it's POC, which is a high volume apex. It has retraced 50% from B to C, and another 50% from C to D, along a low volume node. Furthermore, the Relative Rotation is showing staples in the improving quadrant on the daily, although it is still in the lagging quadrant on the weekly (www.relativerotationgraphs.com).
Always looking for additions...
- XLP is within an approximate horizontal trend channel in the medium long term.
- A break upwards will be a positive signal, while a break downwards will be a negative signal.
- The price has broken the resistance at 77.23 of an an inverse head and shoulders formation.
- Decisive breaks of such formations are considered strong signals of further rise.
- The stock...
we are at a point where the use of credit to purchase staples has outpaced the use of cash to purchase other goods. the expense of debt in discretionary goods has reached an inflection point with the expense of transaction in basic supplies. the chart is at a high. the sell signal is in. count on the cost of goods being relatively cheaper, and that being bad for...
