Seasonality Shrug Off?
Consumer discretionary seems to be the Rodney Dangerfield group, that gets “no respect”. To its credit the sector has been sitting chilly in this long horse race, riding just off technologies lead. In fact the XLY is the second best major S&P sector on a one, three and six month period and also YTD out of 11. Perhaps the reason for the silence considering that exemplary action is how the industrials have driven themselves into the spotlight, as technology fades ever so slightly from the picture. Or maybe it is the chatter with the financials and healthcare as we head into an election campaign. Or it is being overshadowed with the materials as gold and silver are trading in a volatile manner. The discretionary group is enjoying being outside the spotlight, and another reason to marvel at their altitude, is that they are ignoring some weak seasonality trends as seen below with the XRT chart. Maybe this will start to weigh at some point but PRICE action among leaders so far is attractive.