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

The Consumer Discretionary Sector XLY is showing signs of institutional interest and relative strength at support. Unusual volume was noted intraday by David, one of our new members. The observation prompted us to do some more digging, in search for trades in the short term.

Consumer Discretionary Sector XLY Relative Strength

A large block trade on XLY amounting to 88.39 7 million shares hit the tape just before 12:30 PM, alerting us to the possibility of a long position in the consumer discretionary sector if price action remains above 88.39.

XLY-08-22-2017

Consumer Discretionary Top 25 

The top 25 stocks ranked by performance yesterday show some promising candidates. All of these stocks have seen buying over the past couple of weeks.

XLY-Top-25

We have a position in Target (TGT) which we started post-EPS. We’ll add to the stock above 57.00 and consider selling covered calls for added premium as the stock moves higher.

Stocks from the watch list, hailing from this industry group are at or near buy points; those include BABA, FOXF, and WB. Use the Trade of the Day Setup (ToD) for entry and stops.

Consider the top down approach. If these indices are strong and XLY continues higher, it stands to reason that many of these stocks will venture to higher ground as well.

Happy Tuesday

Vinny



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