Home Is Where The Heart Is:
We have spoken about how resilient the homebuilders have been in the face of firm interest rates, and that seems to have spilled over to the periphery plays. Some are acting better than others, and deserve attention. Below is the chart of HD, which is the third largest component in the XLY after AMZN and TSLA (decidedly so at just 5%) and it is trying to muscle itself above a bull flag formation (that can also be viewed as a cup with handle pattern that began at the start of February). It has advanced 12 of the last 14 weeks, although many of them had WEEKLY returns of a pedestrian nature, but it is outshining its main peer LOW as seen on the ratio chart below. The XLY may need to summon some of its strength as other top 10 holdings are floundering like a TSLA (which recorded a bullish harami cross Thursday). MCD, like TSLA, has had some recent issues with the very round 300 number. Others like TJX BKNG and ORLY are holding up their end of the bargain.