Lennar
Tue, February 27, 2024 | 3:49PM ET
Discretionary is making good strides lately, with the Equal-weighted Invesco Consumer Discretionary/Equal-weighted S&P ETF ratio (RSPD-1.28% /RSP-1.52% ) moving to multi-week highs as stocks like AZO-1.58% CCL0.29% CZR-0.56% HAS-0.12% NCLS ORLY-0.68% VFC5.80% TSCO0.37% all showing above-avg gains in today's trading. However, on a larger scale, there hasn't yet been a material breakout to suggest intermediate-term outperformance in Consumer Discretionary. However, i do suspect this happens in 2024, and once this larger downtrend is broken in the relative ratio of RSPD-1.28% to RSP-1.52% , we'll see some outsized relative strength in Discretionary names. as this sector will begin to outperform in the near-term, technically. It's early to overweight, but I'll be watching and this Discretionary sector certainly has some names of interest. As many know, i favor the Homebuilders like LEN-2.98% , PHM-2.53% and DHI-2.42% along with AMZN-1.56% and DPZ-2.51% (on my UPTICKS list) but also feel like the Casinos and Cruise-liners are attractive stocks for mean reversion outperformance for 2024. I like CCL0.29% 's move today for example technically which is exceeding a 2 month downtrend and this might jumpstart this stock in the short run. Below is the ratio of Discretionary to S&P 500, both shown in Equal-weighted terms
