Trading Places with Tom Bowley

Consumer Discretionary Poised To Lead Market Higher

 | 

Last week, there were eight industry groups within consumer discretionary (XLY) that gained 2% or more, lead by the rapidly-improving apparel retailers ($DJUSRA), which gained 4.57% and broke out to 5 month absolute and relative highs:

The strength in the DJUSRA helped the XLY bounce off trendline support this past week. I believe the XLY is trending higher both short- and long-term. Looking at the potential short-term uptrend channel, the highs could get very exciting, but first we'll need to negotiate the double top (red arrows below) that took place in July and September:

I believe we're going to see a big push higher in the S&P 500. There are three signals that, if triggered, would almost guarantee higher prices ahead. I'll discuss all 3 and point out several individual stocks that look enticing to me as we head into their earnings reports in this afternoon's "Q3 Earnings Sneak Preview" webinar. It starts at 4:30pm EST and you can CLICK HERE to register. It will be open to the public and is totally FREE! Hope to see you there!

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
Subscribe to Trading Places with Tom Bowley to be notified whenever a new post is added to this blog!
comments powered by Disqus