On Financial Tides sector ETF's pop up purely as a short term technical play. They are a way to take advantage of a sector that excels in the current market conditions. The Consumer Staples sector is presently that kind of sector.
On BarChart's ETF screener XLP -- Consumer Staple Select Sector ETF comes up as one of the most steadily rising ETF's. Recently XLP has hit 11 new highs in the last 20 trading sessions and 30 new highs in the last 100. A nice steady, consistent performer with a 65 day price appreciation of 10.05%, not bad in this ying/yang environment. BarChart rates XLP as a 65% BUY with 9 of the 13 technical indicators as BUY, 3 HOLDS and a single SELL.
Over on Motley Fool CAPs their members rate this stock as a 145 to 11 likelihood of outperforming the market and in this case I agree with the majority.
Recommendation: BUY XLP - Consumer Staple Select Sector ETF below 26.25 with a protective stop loss no higher than 25.50.
Jim Van Meerten is an investor who writes about financial matters here and on Financial Tides. Please make a comment below or email FinancialTides@gmail.com
Disclosure: At the time of publication I do not hold a position in XLP.
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