The top five holdings of this fund are: Amazon.com Inc (AMZN, 23.60% of assets); The Home Depot Inc (HD, 7.51%); Walt Disney Co (DIS, 5.57%); Comcast Corp Class A (CMCSA, 5.42%); and Netflix Inc (NFLX, 4.84%).
Consumer Discret Sel Sect SPDR ETF (XLY)
From The Chartist Mutual Fund/ETF Letter
Our models are positive. We remain in the bullish camp. One of the most bullish charts at this time is Consumer Discret Sel Sect SPDR ETF (XLY). It is coasting along in record high territory ahead 15% for the year-to-date, leading all of the major sectors. Over the same time frame, Consumer Staples XLP has lost 6%.
Many analysts argue that if a bear market were in the cards, XLY would have topped out several weeks ago as it did during the final phases of the last bull market. Just the opposite has occurred. XLY is exuding consumer confidence.
At the peak of the previous bull market on October 9, 2007. XLY was already 6% off of its bull market highs and below its 200 day line, which had rolled over and was beginning to head south. The Advance/Decline Line (A/D) is also telling us that the bull market is still quite healthy. It’s just a tick away from historic highs. Back in 2007 the A/D line peaked a good four months ahead of the benchmark S&P 500.
A/D volume is also quite bullish. However, bull markets do not last forever, and on the other side of this spectrum, the bears contend that the bull market is in its final phases. Although it has been grinding higher, several indices have been showing signs of exhaustion in recent days. The Dow continues to lag, and the S&P 500 on the verge of new highs has gained less than one quarter of 1% over the last 11 trading sessions. While the S&P midcaps set new highs as recently as two days ago, they have yet to put any space between their January highs. The midcap index has actually made zero progress since July 9th, encompassing 23 trading sessions.
Dan Sullivan, The Chartist Mutual Fund/ETF Letter, www.thechartist.com, 900-942-4278, August 9, 2018