Size Matters:
In our 9/9 Consumer Note, we spoke at length about the possibility of the XRT bottoming, and so far that theory has held up. The ETF still trades 6% off most recent 52-week highs and took a little while to get started last week, falling on Tuesday and Wednesday (albeit marginally) as the XLY rose every day last week. The XLY is just 1% off its most recent 52-week highs in comparison and below is its daily chart. Monday recorded a bullish harami, a very small range after the previous session on 9/6 slumped 2.5% with a wide intraday range of more than 3% from top to bottom. Of course, this waterlogged fund relies heavily on its top 2 components, AMZN and TSLA which make up almost 40%. AMZN sat out the Friday rally as it nears a double bottom trigger of 190.70. As impressive as its rally has been, notice on the ratio chart it is being overshadowed by MELI, as the latter is cementing itself above the very round 2000 number. TSLA recorded a bullish harami cross (doji) on Monday which was a good sign that some strength was on tap. Look for an upside gap fill near 245 from the 7/23 session in the near term, and sometime in Q4 to potentially take out an add-on cup base pivot of 271.10. Last week Tesla rose more than 9% compared to rival RIVN’s 2% gain.