Trading Places with Tom Bowley

Consumer Discretionary Poised To Lead Market Higher

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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

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Tom Bowley
About the author: co-founded Invested Central in 2004 and served as the site's Chief Market Strategist for more than 10 years. Invested Central provides stock market education and guidance for those interested in making their own financial decisions. During his tenure at Invested Central, Tom co-hosted Market Open LIVE, a national radio broadcast that covered many of the largest markets across the U.S. In addition, he has spoken at various conferences throughout the United States and Canada and has taught thousands of traders across the globe how to trade equities more wisely with an emphasis on managing risk and intermarket relationships. Learn More
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