Does Size Really Matter?
Often to get the real picture with what is transpiring one has to take the long-term view. Below is the MONTHLY chart of the XRT, the more “equal weighted” consumer ETF compared to the XLY, and although this may be lagging as seen on the ratio chart PRICE is very taut. Between 2020-22, this traveled from 25 to the very round par number and over the last year has been building the right side of a potential cup base. The WEEKLY chart shows multiple dubious candlesticks with a couple of bearish engulfing, shooting stars, and a dark cloud cover. This week is looking for its best WEEKLY CLOSE in almost 3 years and headed into Friday has advanced 5.6%, and if that holds would be its best WEEKLY gain in 2024 so far. The DAILY chart traded very wide and loose which makes me hesitant but if this can clear the round 80 number PRICE action is omnipotent and all you need to go by. One could make the argument for a bullish inverse head and shoulders (with multiple clavicles). Think this fund could make a round trip to the very round par number sometime in the first half of 2025.