Shorting Consumer Discretionary

$XLY

XLY 0.00%↑ is setting up to print a nasty inside day candle. Banks are reporting that consumers are pairing back discretionary spend. So we’ve a marriage of macro data/commentary lining up with the chart.

XLY 0.00%↑ is a concentrated ETF

So let’s look at the two largest holdings -

AMZN 0.00%↑ completed a gap fill from the move down that occurred with August’s earnings report. It’s hanging above the AVWAP from that gap down, for now. Break below there creates a tradable short opportunity in AMZN 0.00%↑ for me.

TSLA 0.00%↑ is in a similar position, with overhead supply limiting the snap back that occurred after its own earnings report. It’s a similar setup here as far as a break off the AVWAP gap down point goes.