All Aboard:
Amazon is still the largest holding in the XLY, but both it and TSLA are keeping this fund moving in the right direction. It has propelled the ETF to the best acting major S&P sector now on a one, three, and six-month period. It may be masking some underperformance underneath, but overall the group is behaving well and it is what makes stock selection such a critical role in one’s success. Below is the daily chart of AMZN, and notice it did break above a cup with handle pivot, and like most leaders do it offered and add-on buy point above a bull flag trigger of 212.50 which was taken out Wednesday. Its MONTHLY chart continues to power higher after its cup base breakout and that carries a measured move to 280. Could this be ready to revisit the white-hot 90 RSI area which it did back in 2018? I would not be surprised but it has underperformed MELI for the last 6 years on the MONTHLY ratio chart, but PRICE action is omnipotent. Talking about MELI just when we thought the very round 2000 number was a level of support it cratered on earnings and this week met resistance right at that figure. It bounced nicely off the 200-day SMA and may be forming a double bottom pattern but wait until that 2000 number records a CLOSE above.