Consumer Hits 10-year Lows

JC Parets
May 25, 2024

One thing we know for sure is that stock prices go up and stock prices go down.

Sometimes they go up mostly in unison, and other times most of them trade lower together.

In most cases, however, some stocks are rising while other stocks are not, and possibly even falling.

We call these "Normal" markets.

Check out last week's Conference Call Video, Charts & Trades for all the details on how we're playing it.

You can see here in the chart below, for example, that with the S&P500 closing at new all-time highs this week, the Consumer is just not getting the memo.

In fact, Consumer Discretionary just went out at new lows relative to the S&P500.

The underperformance has not stopped. It's only gotten worse.

And yes, this Consumer Discretionary Index consists of only Large-cap stocks and a lot of it is being driven by heavy weightings in Amazon and Tesla.

But on an equally-weighted basis, Consumer Discretionary is also hitting new 52-week lows relative to an equally-weighted index of the S&P500.

So no, it's not just Amazon or even Tesla.

It's Consumer Discretionary that is the problem.

Even Small-cap Discretionary peaked 3 years ago relative to the rest of small-caps and they've been struggling ever since.

So the problem goes all the way down the cap-scale.

I think it's important to zoom out. Always, not just this time.

But this time it really tells a more bleak story.

Look at Consumer Discretionary going out this week at new 10-year lows relative to the S&P500:

I think what this all continues to point to is that there are opportunities to buy stocks, but there are certainly opportunities to sell stocks too.

And there's nothing more normal about that.

We all spent the week together in California going over anything and everything in this market.

From stocks to interest rates, to metals, energy and crypto.

There was nothing we didn't cover.

We are all part of a Portfolio Accelerator Program that is hosted by Stock Market TV, and it was the best thing I've ever attended in my entire career.

Look at this crew:

I don't make the rules around here.

Mary is in charge.

So if you're interested in joining us for our weekly meetings, LIVE in-person events 3 times per year, and hanging out all day in our internal trading chat, you really need to get with Mary.

She'll get you the videos and slides from this week and she'll make sure you never miss another meeting.

This week was insanely helpful.

Not just for all the Portfolio Accelerator Members in attendance, but selfishly for me as well.

That was awesome!

Email Mary right away and set up a call with her.

JC

 

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