Consumer Discretionary Strength
When looking across all of the major sectors in the stock market, you will be hard pressed to find a sector that is performing better than XLY - consumer discretionary.
This sector refers to goods/services that consumers want, but arenโt 100% essentials. Think of retail, clothing, leisure goods, etc.
The top holdings of XLY are: AMZN TSLA HD MCD BKNG
We are seeing major strength in this sector.
Outside of stocks within XLY, one sleeper stock to keep an eye on is ZIM.
ZIM is a shipping stock but they benefit from the XLY showing strength because if consumers are buying a lot of discretionary goods, they will have increased shipping business to fulfill supply.
You can see the stock is attempting to break out of a base right now. This is one that I have on my radar and I recommend you keep it on your radar as well.
I break down consumer discretionary names and why they are seeing strength here: