Remember GameStop?

Before the recent, enormous volatility in some of the “heavily shorted” names, that witnessed huge PRICE gyrations in stocks like GME AMC BBBY, the XRT was the leading retail ETF. The fund now sits 20% off intraday highs made on 1/28, while the XLY currently trades just 2% off its own 52 week peak. Is the XRT ready to reclaim its leadership status? It is likely with the weighing down in the XLY of its top 2 components. AMZN feels heavy, and it fell more than 2% on Friday, and has not recorded consecutive WEEKLY gains in 4 1/2 months. TSLA, the two top holdings account for 40% of the XLY, has now lost ground 4 of the last 6 weeks, and trades 13% off most recent 52 week highs. It is finding comfort at its rising 50 day SMA, for the first time since a break above a 502.59 cup base pivot taken out on 11/23/20. There are two things to take away from this theme. Number one, individual stock pickers are continuing to capture beta against playing the ETFs themselves, and smaller names are still performing better than their mega cap cousins in the retail arena.

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