A number of more defensive sectors, like Consumer Staples $XLP, Real Estate $XLRE, and Health Care $XLV are transitioning to green as U.S. markets sell off. This points to the growing risk aversion from investors as money rotates into lower beta and safer equity plays.
We're at a key conjecture between more significant drawdowns in risk groups or buyers stepping in to defend key levels. Last week I pointed to the Consumer Discretionary ETF $XLY retesting its breakout level at the 2021 highs.
Prices continue to work lower in the short-term, and now is when buyers must step in to defend this level.
As evident by the recent dip in this chart, consumer stocks are shifting fast.
There's a lot of headline risk right now with tariffs and trade wars, and there are bound to be significant winners and losers in this space in the coming months.
It's more important than ever to be selective in this group, so that's why retail-expert Jeff Macke is going live at 4pm today (Thursday) where heβll break down the biggest moves in retail and reveal his model portfolio.
