The Pendulum Swings:
Below is the chart of the major S&P sectors on a YTD basis. Sure it is a small sample size with not even the first quarter in the books and notice the discrepancy, with just energy in the green thus far in 2022. Wednesday the top 2 groups, in energy and utilities, were the worst performers of the 11, but one has to look at the discretionary sector, via the XLY. Its weakness is glaring but after the CLOSE some bombshell news with AMZN, the fund’s largest component is splitting 20:1 and is doing a $10B buyback. As of this writing it was trading above the very round 3000 number, a significant move for such a large-priced stock. Will this after-hours move hold and buoy the entire space, or is it an act of desperation with a stock well into bear market mode off 26% from highs made last summer. The name is lower 8 of the last 9 weeks and the second-largest name in the fund in TSLA is holding the very round 800 number well with just one CLOSE below on 2/23 (the day after touched the 700 figure precisely before a 100 handle rally intraday). The group needs some sustained moves higher from this 1-2 XLY punch. Lets see how the rest of the week plays out with the duo.