Accounting Aces:

In this market environment, when it seems like everything is being pulled upward, even the moribund energy group seems to have wings. Some may feel that is a frothy climate for the overall market (I am NOT a believer in that scenario), and when one couples that even names that have undergone accounting irregularities are acting well one is left scratching their head. We know Under Armour has been one of these names, and below is the chart of MAT and how it appeared in our 12/10 Consumer Note, also a victim of the malady. However both of these stocks have acted firm. In fact Mattel is on a current 5 week winning streak, including an advance of 10.5% the week ending 12/13. It is now extended by 11.5% from the double bottom entry of 12.49 taken out on 12/12, and volume trends are bullish (the last week of distribution came the week ending 5/31. The XLY is still hostage to the action of AMZN, but what I found interesting is that the staples and discretionary sector ETFs behavior on a YTD is nearly identical, with the XLY and XLP higher by just more than 27%. An intriguing year 2019 has been.

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