Skip to main content

US Consumer Hurting Badly

March 15, 2024

In today's edition of "This is NOT 2023", here is the U.S. Large-cap Consumer Discretionary Sector breaking down to new 52-week lows relative to the rest of the market.

You can see yesterday's edition here: Energy Stocks Lead US Markets

This isn't 2023. It's a completely different market.

Take a look at this chart below.

New 52-week lows.

This was not happening last year.

In fact, we haven't seen much of this at all from the Consumer Discretionary sector, which had been a leader for so long.

Many investors aren't old enough to remember a time where Consumer Discretionary underperformed.

Look at this historic structural uptrend in the relative strength for Discretionaries.

This year we're seeing the exact opposite.

We're not in Kansas anymore Toto.

This isn't the "Just Buy Everything" market we were in last year.

And it doesn't have to be.

We don't have to pretend that it is.

There are stocks to own right here. And there are certainly stocks to sell right here.

I'm also looking for some delta neutral positions to balance everything out.

We'll talk about this all on Monday's Premium LIVE Conference Call.

You can register for that here.

I'll be hosting LIVE @ 6PM ET March 18th.

See you there!

See our Secret Sauce (Free)

What’s the difference between The 2-to-100 Club and The Minor Leaguers? And what separates The Young Aristocrats from other stocks?

Steve Strazza and I pull back the curtain and show you the precise criteria we use to create a coverage universe.

This is the secret sauce.

We’ve purpose-built a total of 13 scans to break down specific markets and identify trade setups.

These scans are the source of just about every trade idea we publish.

For the first time ever, Strazza and I go step by step through our bottoms-up analysis using The 2-to-100 Club, The Minor Leaguers, and The Young Aristocrats.

And we also cover a couple of bonus scans of under-explored areas of the market.

We love to make charts, like Steven Spielberg loves to make movies.

But there’s a lot of unseen work behind all of the imagery that appears on your screens.

Well, we’re giving you all of our magic.

This is how we get from basic price action to a specific trade idea.

Click here to see how we do it.

 

 

Filed Under