Round Number Magnet:

The top 2 components in the XLY, AMZN and HD, make up almost 38% of the ETF, and both have been on nice runs higher. It is hard to compare any retail peers, or for that matter many other names in the overall market however to Amazon. It commands respect, and although it was not immune to the market follies in February-March, it has since performed brilliantly up nearly 900 handles and trading currently at all time highs. It is higher 12 of the last 13 sessions, and has declined just 2 days in all of May thus far. The last 4 weeks have smartly digested the strong week ending 4/17 advance of 16.3%, and today it stormed past a bull flag pivot, and this break carries a measured move to the very round 3000 number. It has been compared to WMT, with the latter’s move into online years back with its Jet acquisition, but this week Walmart has struggled after Tuesdays earnings reaction left a mark with a big negative reversal recording a bearish engulfing candle. It is hard to say FOMO with AMZN, as the name is higher by a robust 35% YTD, but not spectacular. The train however, could just be leaving the station on a long upward journey.

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