Enter At Your Own Discretion:

They XLY has produced a nice run recently, as the fund gained 12 of 13 sessions between 6/4-20. Now is the hard part. The bulls can declare that the ETF is hanging strong just off all time highs, the bears would state a double top. Looking at the top holdings, HD followed through to the downside after last Fridays bearish engulfing candle today. MCD has recorded FOUR bearish engulfing candles alone in the month of June, although it has the look of a bull flag pattern. Of course the 800 lb gorilla in the room AMZN looks strong just below a double bottom pivot of 1917.61. Let’s take a look below at the actual XLY itself.

Take Me Private One More Time:

Sometimes when comparing rivals, one notices there is no rivalry at all. In the retail arena TGT has just squashed KSS, which is now lower by 45% off most recent 52 week highs. Below is the ratio chart with COST compared to BJ. It shows a stunning contrast, and this chart really accelerated when COST started June off on a 14 session winning streak. Last Friday did record a bearish shooting star at all time highs, but it may have been affected by quadruple witching. In addition BJ is a name that has been taking private a few times and reemerged as a public company, not the most bullish trait. Others that come to mind would be MIK or PRTY, both which now trade 60% off their most recent 52 week highs.


Price action in my opinion is omnipotent. Often it will move a stock well before a news event comes out. Below is a good example of just that, with the chart of SBH and how it was profiled in our 5/30 Consumer Report. This name has been a laggard for a long time and after todays plummet of 17%, it trades nearly one half off its most recent 52 week highs. The stock ran into trouble with a very bearish large filled in black candlestick on 2/5 right at the very round 20 number. Before todays cratering lower it lost ground 8 of the last 11 weeks. Sell weakness and buy strength.

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