Have you noticed that Consumer Staples are working on their lowest levels relative to S&Ps in over a decade?
Remember, underperformance from Staples is a classic characteristic of strong uptrending stock markets, which I’m not sure if you’ve noticed, we’ve been in.
Last week I went into detail about what we’re looking for as a sign of a market correction. In fact, I showed 4 important factors we’re watching. Make sure you’re caught up on those here.
Today, I’d like to point out how one of those 4 signs continues to flash Green, meaning: Buy Stocks.
Here is the relative strength of Consumer Staples inverted. When the black line is moving up, Staples are underperforming. When the black line is moving down, Staples are outperforming. As you can see, underperforming Consumer Staples is consistent with higher stock prices and the opposite is also true, when Staples are outperforming stocks are usually under pressure. [Read more…]