Invesco S&P 500 Equal Weight Consumer Discretionary ETF
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RSPD
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$52.41
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-1.28%
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$52.67
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$52.77
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$52.38
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-1.49% ) moving to multi-week highs as stocks like AZO-1.58% CCL0.37% CZR-1.72% 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-1.49% , 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-2.58% and DHI-2.42% along with AMZN-1.44% 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 CCL0.37% '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
Thu, February 8, 2024 | 3:38PM ET
Another day which is more interesting than the SPX net change might indicate with prices just marginally "green" at +0.06% at 4997.37 hovering just below 5000. Both Small and mid-caps are up sharply today, while both US Treasury yields and US Dollar have pushed higher. Large-Cap Tech influence is showing a rare period of underperformancce as FTNT-1.54% , AAPL-2.41% , ORCL-5.27% , AMD-4.75% are all lower. Yet the strength of MPWR, ON, ANET, NXPI, AVGO gains are helping Semiconductor stocks and the broader equal-weighted Technology sector to show gains of more than 1%. Thus, while markets might seem flat today, Tech is actually showing some stellar outperformancel along with Equal-weighted Discretionary. Both of these RSPT-1.95% and RSPD-1.28% are up more than double what XLK-2.14% and XLY-0.98% are showing in Thursday's trading. As discussed previously, SPX 5000 has no real significance outside of psychological reasons, and likely should be surpassed next week.
