Spirited Shoppers:
The consumer is alive and well. They have become more selective with their spending habits, but there are plenty of opportunities in the sector. It still maintains its third best performing major S&P sector on a YTD basis, higher by 24.6%, behind just technology and real estate. The XLY is certainly buoyed by all of the top ten holdings just single digits off most recent 52 week highs. BKNG, the former Priceline attempted to CLOSE above the very round 2000 number but came up just shy Thursday. The XLY is looking for its first three week winning streak since June, and today finished decisively above its 50 day SMA which has given it trouble the last month. This fund can be prone to potent moves as it advanced 25 of 29 sessions between 6/4-7/15.
Durable Household Products Takedown:
We do frequently mention trends are more likely to persist than reverse, but of course there are always exceptions to every rule. NWL may be one of them as today it recorded its first CLOSE above its 200 day SMA in years (besides the 12/3/18 session), and a couple more above the secular line could make the name investable again. Recently it registered its first back to back powerful positive earnings reactions in years too, gaining 14.2 and 13.5% on 8/2 and 5/3. TUP meanwhile has been well below both its 50 and 200 day SMAs since January, and has been lower robustly by 19.1, 9.3 and 27.4% after its most recent three earnings reports.
Examples:
Some retail names have benefitted from the homebuilding plays, which overall have acted well within the world of depressed interest rates. HD and LOW are both trading near all time highs. Below is the chart of another play in the space of FND, and how it appeared in our 8/22 Consumer Note. It has advanced 4 of the last 5 weeks, with all of the gainers up respectably by 13.5, 4.2, 7.3 and 4.7%, and this week has risen another 1.2%. It has broken above a 48.82 cup base pivot on the WEEKLY chart, and on the daily is just below the very round 50 figure, which is within a bull flag formation. A break above 50 would carry a measured move to the round 60 number.