Staples Still In Control:

The ratio chart may be speaking to the softness in AMZN and TSLA with the former now 49% off most recent 52-week highs and off another 4% this week heading into Friday. From a swing trading perspective once it slipped underneath the 21-day EMA in mid-August one would have been able to ride it lower with confidence with brief exceptions in early September and late October. The WEEKLY loss with TSLA is more pronounced off by 11% and the retest last week of the bear flag breakdown at the very round 200 number from 11/7 is gaining steam. But some XLP components are acting well and that combination speaks volumes about its strength against the XLY. PG has declined just 1 session in December thus far, as the S&P 500 fell 5 straight sessions to start the month. PM will complete its handle on a long double-bottom base just above the very round par number in a pattern that began in late May. As always judge each individual stock on its own merit.

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