A Tale Of Two Heavyweights:
Over the last one-month period, the waterlogged XLY has been weighed down by its top component in AMZN. A lot of that damage was done during the week ending 7/30 that slumped 9% in well above average WEEKLY volume. During the last one month timeframe, the XLY is basically UNCH, just the 10th best performing major S&P sector besting just energy (interestingly the more “equal-weighted” XRT is down 1%). One name that could give a boost to the group is the second-largest holding in the XLY in TSLA. The electric car company is still 20% off most recent 52 week highs, while AMZN is just 13% off its peak made in early July. Truth to told, the consumer space overall could get a boost as bulls could make a compelling argument. I have not played either of these names but with AMZN holding its 200 day SMA, and TSLA potentially ready for a break above a bull flag, the XLY could be ready to change its cellar- dweller status compared to other sector spaces.