“Stapling” Things Together:
As markets have been strong overall in 2024 the staples have settled somewhere in the middle of the pack but in the lower half. On a YTD basis so far they are higher by 12%, nothing to sneeze at especially, for such a defensive group. The daily chart of the XLP below shows it may want to join the party. Notice on 11/8 it completed a bullish morning star pattern and the lows there would be a good area to play against on the long side. On the WEEKLY chart, this has been very consistent (the XLP has only lost ground on a WEEKLY basis in consecutive weeks just twice in the last year in April and October, both circled) with nice action POST breakout above a double bottom in March, a bull flag breakout in August and now another one is setting up. On its MONTHLY chart, there is a caveat as October registered a bearish evening star pattern and could make a move back toward 75 to retest the long bull flag breakout. Longer term that measured move goes too just beyond par. This could be a good place to park money if NVDA disappoints next week with earnings. Not likely, but if it does occur staples could be a nice hedge.