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

Over the weekend we pointed to the bullish price action in the consumer discretionary sector, as compared to consumer staples. When XLY outperforms XLP, the ratio between the two drops. The resulting drop alerts us to the probability of a bullish development in equities, especially in XLY.

Fast forward to the 19:46 mark for a review of sectors.

As Consumer Discretionary stocks capture traders interest, they will continue to pop up on scans. Below are a few that populated a scan that looks for relative strength. We culled on the XLY candidates for our consideration.

BBY is in the beginning stages of changing trend. An extended trend line across the pivot lows highlights the slope. Price is above the 9/20ema, passing the test for consideration. RSI is rising and MACD is crossing. Momentum is shifting. EPS is scheduled for February 16.


COH is on our radar. We are watching this bottoming pattern, with earnings on January 31. We will revisit this stock after earnings.


CVS is trending. MACD suggests bullish momentum will continue. EPS is scheduled for February 9. Note VBP resistance doesn’t take hold until price reaches our target of 90 (+/-) 200ma and then 92.00 VBP ceiling. RSI is heading higher.


Dollar General is signaling it might push above the 9/20ema with a buy signal triggering on Tuesday. RSI is trending, as well as stochastic. Earnings are on March 2.


Michael Kors Holdings Ltd. exhibits a rising RSI, MACD cross and volume, as it held above the May low in its recent retracement. Targets are the October low at 46.18, then the 200ma. The company reports February 7.


Nike is a new entry from the watch list. We have a stop below Tuesday’s low. RSI continues to rise. SOTEMA is rising in unison, as price remains above. A descending channel on the weekly time frame aligns with the 200ma overhead. Depending on the reaction, as prices encounter this area, we may take some profits. Top of the Kirby is in this zone as well.


Consumer Discretionary should continue to perform. That said, calculate your stop after the opening range low is complete.

Happy Trading – Vinny