Staples Brewing:

When consumers cling to the staples sector it is thought of as defensive and a possibility of wobbly economic times as they gravitate toward what they need rather than want. The group is known for its dividend yields which also appeal to a certain demographic but some will sport solid chart action that demand one’s attention. The daily chart below of the XLP shows a bit of a hiccup starting the first few days of April, however, it may be looking to end it on a positive note. Its MONTHLY chart has a nice complexion too as March completed a rare 5-month win streak (the only other one in the last decade was between June-November 2018 which did see a big drawdown in December that year). It is carving out a cup base and one can enter with a buy stop above the 77.12 trigger. The group was the 2nd best major S&P sector performer out of 11 last week, bested only by utilities, and if this conservative stance picks this may be a nice space to hide out in for the near term.

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