Goliath Energized:
Amazon and Tesla will always dominate the discretionary conversation as they make up the lion share of the XLY. Between the two of these heavyweights, they make up almost 40% of the ETF. As they go so does the fund. But is the XRT looking to turn the table on the XLY? The daily chart of the XRT below is saying to the XLY to hold on as it may be waking up, not long after failing to break above a bull flag formation. It broke forcefully above a double-bottom trigger Thursday and it is showing that the consumer group has solid breadth and seeing some rotation into it. On a YTD basis they are both up in the 3-4% neighborhood, but the smaller (David) provides a larger dividend yield of 1.5%, compared to the XLY at .7%. The WEEKLY timeframe looks attractive as well as its recent pullback successfully retested a prior bullish ascending triangle breakout. Its MONTHLY chart looks to keep the one month up and one down since last March intact as a bullish hammer takes hold with just Friday left in January. Par feels like it will have a magnetic pull into the second half of 2025 where it last touched with the bearish shooting star candle in November 2021.