Market Analysis: Double Bottom Confirmed, Consumer Discretionary Stocks Surge

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Financial Markets News

XRT,Consumer Discretionary Stocks,Double Bottom

This week's market analysis explores the recent double bottom confirmation in XRT, signaling a potential surge in consumer discretionary stocks. The author highlights inflation concerns fueled by stimulus and spending despite the current economic slowdown. Silver outperforming gold would further support this narrative. The analysis also touches on Bitcoin's potential bottoming out, TAN's recovery, and the resilience of copper.

In this case, I'll share my notes with a follow up of how the main themes played out. Then, I'll map out a plan for this coming week.over 74 looks like a confirmed double bottom-that will spur some consumer discretionary stocks esp. those based on my vanity tradeHence, spending and stimulus are happening as if we were in a deep recession. We are not. This is a slowdown from some overzealousness and thus, both spending and stimulating could be quite inflationary.

What would support a more inflation narrative now, is if silver begins to outperform gold. That is yet to happen.Copper looks resilient.Bitcoin indeed looks as though it bottomed end the week close to 60k.TAN seems to have bottomed, taking out the lows from early August this past week and then rallying to close near the highs of the day.The TAN: SPY performance is basically on par. TAN is back above the July 6-month calendar range low.

Perhaps my boldest call as so many doom and gloomers surfaced about the plight of the consumer while I touted no recession and the vanity trade.It looks good; however, we would like to see XRT change phase back to bullish. And we would like to see XRT outperform the SPY while momentum increases.

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