Beware The Consumer:

It has been spoken plenty of how well the consumer is positioned coming out of the pandemic. They are supposedly flush with cash, and eager to spend. Talk is cheap, but many names in the retail arena have been acting well in anticipation of this. A trend is a trend, and whether it is an uptrend or downtrend, it is more likely to persist than it is to reverse. The chart of the XRT below is lower by 4.6% this week headed into Friday, and Thursday it bounced right at the low for the WEEKLY range ending 3/12 that rose almost 16% (the ETF rose 17.8% the week ending 1/29 as well, but it did CLOSE more than 10% off intraweek highs). GME has uncharacteristically become bloated at the top of the fund comprising nearly 12%. That was the root cause of the late January chaotic trade. At the bottom of the chart, we show the ratio chart that shows the outperformance of the XRT compared to the XLY. It might be explained as easily as AMZN and TSLA, the top 2 holdings in the XLY, down 14 and 29% from their recent 52 week highs.

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