The Consumer Discretionary sector is dominated by a handful of huge names, but if you look beneath the surface, things look quite a bit different.
(Premium) February Consumer Discretionary Outlook
If there was one theme for January, it might have been the old market adage: From failed moves come fast moves in the opposite direction.
(Premium) January Consumer Discretionary Outlook
We were premature in our upgrade of the Consumer Discretionary sector last month. We believed the relative lows from the spring would act as support and offer a relief rally, but that thesis proved incorrect. Instead, the sector broke to new lows on both a relative and absolute basis:
(Premium) December Consumer Discretionary Outlook
Consumer Discretionary was weak in November, but so far, it’s been able to hold above the May lows on both an absolute and relative basis. For tactical investors, this looks like a good setup with clearly defined risk.
(Premium) November Consumer Discretionary Outlook
Consumer Discretionary has outperformed other growth sectors like Communications and Tech. Unlike those, it’s still above the relative lows it set earlier this year. But just like those two other underperformers, this is a downtrend that we don’t want to be bullish on. Because we still have the potential for a higher low here, we’re not recommending we be aggressively underweight the sector, though, and we’d feel comfortably adding some exposure above the June swing highs that are currently overhead resistance.