Despite initial weakness this morning, the consumer discretionary stocks are distinguishing themselves. The XLY ETF is now within a few pennies of February highs, after notably lagging the far more defensive consumer staples ETF. I am watching the cyclical discretionary stocks throughout the morning and beyond for insight as to whether the market truly is flashing signs of topping out, or instead is masking a bull correction as wild indecision, in order to shake off as many weak longs as possible.
I am also seeing solid price action underneath the surface in many individual names which we discuss and trade inside our 12631 chat room. Even if the major indices are mildly red, the real gauge in an overall bull run is whether a multitude of individual stocks continue to base out and break higher.
A few other long ideas to watch: HEES KKD RGR TRLA
Homebuilders stay happy and some of them still have over 20% short interest.
Next oversold dip, will definitely add homebuilders for bounce
What do you make of the market holding up well over last few weeks in spite of recent dollar strength?
Covered that in my Weekly Strategy Session. So far, so good.