XLY — 5 entries on this page, 0 of them a change of direction.
I'm short consumer discretionary XLY.
Uh it looks like consumer discretionary is going to start to crash as well. XLY we're short that.
As for XLY, the non-core consumer goods sector, another large-cap growth sector that performed well on Monday, we note that there is no clear pattern here in terms of the classic formations we are looking for. This is clearly a very large triangle pattern.
The best thing about it, of course, is that the XL Y indicator has proven its ability to respect this line, and that periods of strong weakness have previously been exploited to achieve significant gains.
We saw it again this spring, and more recently in July, and it may happen again in September .
And then the last one is consumer discretionary and that is an interesting one because it has hooked around. It was at a like a blue rating, like mildly positive. And I'm going to change it to a mildly negative, not an underperformer.
While it's very tempting to do that, and I'll show you on the price chart while I why I am still keeping a little bit of room for improvement for the consumer discretionary sector in a minute.
Consumer discretionary, I talked about interest rates on the rise. And these discretionary, particularly retail-related stocks, are getting hit. We are still very much in a confirmed downtrend and then we have these shorter term moving averages closing below the longer term.
This is 21 day down through the 200 and that is noted as a death cross. Quite simply, it creates a heavier pattern so that in an effort to reverse it, it will take a little bit longer but certainly we are seeing weakness in that discretionary area.
And then the last one is consumer discretionary, and that's also a a pretty important sector. There's a couple of big stocks in there. It is moving into the improving quadrant, and that warrants an a move from underperform to neutral with a positive outlook while it's moved into the improving quadrant.
