Karpel’s Corner: All-time high for $XLY!

Welcome to Karpel’s Corner. This is where I throw out my thoughts on the markets and share some of my favorite strategies. I keep it market-focused, and never miss an opportunity to teach trading strategies and commentate on the latest trends affecting the financial markets. Hope you enjoy today’s post!

The consumer is definitely not dead–at least if you believe the price action of the Consumer Discretionary ETF ($XLY), which broke to an all-time high of $68.68.

We have apparel names, $UA & $SKX, and retail names, $JWN & $SHW, with long-term scores of 10 and short-term scores of 10.  This is very bullish scores for these names. Strategically looking at Bull call spreads that are slightly in-the-money would be the higher probability trades that we would look at if we would be trading these stocks.

Switching gears, Joe Cusick and I discussed the Housing sector numbers that came out this week on Tradespoon Live TV. Joe broke down the potential move being priced into the sector ETF $ITB being about ~1 percent to 3 percent for the week. The ETF has moved post the housing data +1.4 percent.  If you missed the live show, check out the video archive: https://www.youtube.com/watch?v=KiAy6UfohEo– .

See you next time at the Corner!