(Premium) November Consumer Discretionary Outlook
Consumer Discretionary has outperformed other growth sectors like Communications and Tech. Unlike those, it’s still above the relative lows it set earlier this year. But just like those two other underperformers, this is a downtrend that we don’t want to be bullish on. Because we still have the potential for a higher low here, we’re not recommending we be aggressively underweight the sector, though, and we’d feel comfortably adding some exposure above the June swing highs that are currently overhead resistance.
The other reason to be more constructive on the space is because of the relative strength shown by a lot of the underlying stocks. Auto parts retailers are ripping. Check out Autozone, O’Reilly, and Genuine Parts all setting new highs.
Restaurants have done well, too. McDonalds just broke out to above its prior peak.
There are also some favorable setups in hotels, cru
The post (Premium) November Consumer Discretionary Outlook first appeared on Grindstone Intelligence.