The Closing Print live trading and financial blog during market hours.

The consumer discretionary sector stocks followed through last week, exhibiting relative strength. S&P 500 closed higher, led by XLY, XLE, XBI, XLV, and IBB.

This is week 15 of the bullish reversal that started on December 26. Most sectors are working hard and show signs institutions were positioning in several notable sectors in the new quarter.

Institutions took defensive positions in August

Institutions gave fair warning back in August, two full months “before” the FED announced its hawkish tone. Had traders watched this one ratio, in addition to Junk bonds, and other risk-off assets, the inevitable fallout could have been avoided.

Now we see the opposite, institutions have been buying economically sensitive cyclical or consumer discretionary stocks. Better than expected jobs numbers should have a positive effect on these candidates.

Consumer Discretionary Sector

The consumer discretionary reached new heights last week, closing at the top of its range. The lower Bollinger band turned as well, signaling a potential grind as prices stay bullish inside standard deviation one and two Bollinger bands.

MACD is above its signal line and rising. Histogram produced a taller bar last week, cofirming bulls are in control.

Consumer Discretionary – Auto Parts Group

This group has been on fire, as the job market firms and fewer unemployed workers confirmed in Friday’s jobs numbers. Have a job? Buy a new car or fix your existing vehicle.

MarketSmith Industry Group – Auto Parts Suppliers

S&P Futures are lower, testing earlier levels.

The watchlist is populated with a few of these stocks. Also watch restaurants, bars, clothing, personal electronics, autos, auto parts, and home builders, among others.

Join us today in the trading room for our LIVESTREAM broadcast  

during market hours, as we trade consumer discretionary stocks and other new positions exhibiting relative strength. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.

Happy Trading,


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Disclaimer:  Do your Own Research

Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional investment advisor in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. Trades and or positions listed and taken from the watchlist are my own and should not be considered “advise” to enter any particular position or asset.

Investment Warnings

We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.

Live Sessions

Live broadcasts are educational in their content. Proper risk management is considered on every trade or asset mentioned. 

*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities. 

As always, the use of technical and fundamental analysis is encouraged in order to fine tune entry and exit points to average seasonal trends.

These mentions are stocks that we may or may not decide to trade as outlined in the watchlist. Always use a stop.