Giddy Consumer:

Retail sales numbers came in strong recently, and whether you want to say it is stimulus checks or any other reason, stocks in the group have perked up. I remember last year Gundlach stating sales data was skewed because consumers were buying on stretched credit cards. All of this could be true, but if you are an investor, all you want is to pay attention to PRICE action. On a YTD basis, the XLY is just one of three of the major eleven S&P sectors in the green up 4%. The ratio chart below comparing, the XRT to the S&P 500, shows how well it has been behaving since the start of April. Sure there have been some illogical moves, with the gains in a M or FOSL (the former met its short term demise at the very round 10 number recording a bearish engulfing candle on 6/9). But they are overshadowed by legitimate moves in AMZN OLLI THO NKE CMG DPZ TSCO BJ ETSY MELI or STMP, just to name a few. Look at each individual situation on its own merits.

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