Rooting For The Underdog:

Often we like to compare the XRT to the XLY to judge sentiment or define somewhat the “risk on-off” relationship regarding the consumer sector. From the ratio chart below it can easily be determined that the names outside of TSLA and AMZN are acting better than the top-heavy XLY. It is now nearing 3 months of outperformance and expect that relationship to continue as we know trends are much more likely to persist than reverse themselves. As AMZN has gained on a WEEKLY basis just 4 times since mid-August and is 46% from most recent 52-week highs, TSLA is 53% off its annual peak made in January at the very round 400 number (although it did record a WEEKLY bullish hammer off its rising 200 day SMA last week). They say do not judge a book by its cover and if you look under the hood perhaps the consumer group is acting better than what the XLY is conveying. RCL has nearly doubled in PRICE from 30-60 since July as a leader in the cruise space, HOG is also bull flagging, BKE in specialty retail is building the right side of a WEEKLY cup base, WING jumped 100 handles from late May. Do your homework and feed capital to the leaders, and starve the laggards. 

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