Well, as we thought, the market blew off some steam only to resume the path higher. Consumer discretionary and tech led the way, which you would expect to see in a rally, so that’s a good sign. The more defensive names, once again, settling toward the bottom of the barrel.
If this rally is continue on it’s path higher then we have a couple sectors we can look at. The first is the most obvious of the bunch, a run at the tech sector. The next, consumer discretionary, but the one we have been keeping an eye on for a little while, retail.
SPDR S&P Retail ETF (XRT)
The retail sector remains a tough cookie to crack, especially with the stubborn strength of the consumer. Much to the Feds dismay, spending remains on a hot streak with few signs of slowing down.
If the rally shows it has legs, you may want to keep this sector on watch for a way to trade the sector’s strength to the upside. Remember, for these longer trades, entry is still going to be key. Don’t just decide you want to trade this and jump in, plan your…
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