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

Consumer Staples Underperforming Consumer Discretionary Usually Leads to an Improving Economy and Equity Appreciation

While S&P 500 stocks continue their bullish trend, we now see consumer discretionary stocks outperforming consumer staples. The opposite foretold an impending decline in September of 2018. Should we follow the signal as the pendulum swings?

Consumer Staples / Consumer Discretionary Ratio

Consumer discretionary stocks should outperform its defensive cousin, consumer staples when institutions and investors position for an improving economy. While this is only one “input” that we utilize, we followed the logical conclusion in September to protect our gains very successfully.

It only makes sense that the cycle higher can last longer than most anticipate, so we will follow until the cycle changes.




Market timers should also watch Junk Bonds (JNK), High Yield Corporate Bonds (HYG), Small Cap Stocks (IWM), and Biotech Stocks (IBB/XBI). Bonds will signal first!

Additional Considerations:

  • Don’t Fight the FED. The FED is accommodative
  • Inflation is low
  • Corporate balance sheets are strong
  • Stocks are historically not expensive (PE = 17 +/-)

For now, the bullish cycle still prevails, barring any catalyst introduced in the interim.

Consumer Discretionary Stocks Worth Considering

Join us today in the trading room for our LIVESTREAM broadcast during market hours, as we discuss existing and new positions. 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.