The Magic Behind Consumer Discretionary’s ‘Intact’ State

Look at the relatively sad states of the majority of XLY’s top holdings. Propping the ETF up? Why, none other than market darling AMZN as the momo money flies right back into the names it puked in early February. I bought GOOGL at the lows for just that reason, but sold it a few days ago.

Traders, algorithms, casino patrons, mom & pop and managers of other peoples’ money can be very prone to herding, in this case making the US Consumer Discretionary segment look okay when in reality its short-term technical status seems anything but.

xly

Consumer Staples have no such benefactor.

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