The Consumer Sector is Strong

• Posted by Greg Harmon
• on October 3rd, 2013

It has been said that this is a stockpicker’s market, or a market of stocks not a stock market. If you have to pick a place to look then why not focus on the Consumer Discretionary Sector. The Consumer Discretionary Select Sector SPDR ETF, $XLY, gives you ample reason for that or to just focus on this ETF. The weekly chart below shows that like every other sector ETF it printed a Shooting Star Candlestick three weeks ago and was confirmed with a lower close last week. But this sector is bouncing back and building an Bullish Engulfing Candle after 3 days. The RSI continues to hold in bullish territory and is moving up while the MACD is about to cross higher. These support the bull case. Whether you just trade the $XLY or use this know ledge to look for individual names within the Consumer Discretionary sector does not matter. Just make sure that you are trading and buying stocks with strength.

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