The consumer discretionary sector had a large step size move up in our multi-factor model ranking from the prior month.
I see this for both the U.S. and global markets.
The U.S. weighting in the iShares ETF (RXI) is high at 56.44%, but it is the best way we can find to get a measure of a sector’s performance on a global basis.
We show the country weightings and sector breakdowns within a free special report on our website. Click the link below for the report.
Our model has a heavy weighting of an equity’s relative performance to a benchmark; here, we are using the S&P 500 Consumer Sector (XLY). In our report, we show both ETFs on an absolute and relative basis as well as our model score. You can see that the XLY went bullish in May of 2020 and started to weaken in January of this year when the relative performance started to deteriorate. We have the model score improving as the relative strength has turned up. RXI shows a similar improvement.
We also highlight some good long ideas within the space.
The author or his firm have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.