By Dave Fry, founder and publisher of
and author of the best-selling book
February 22, 2010
WAITING FOR CHUCKY THE CONSUMER
Subscribers used to wonder why I referred to Chucky when speaking of XLY (Consumer Discretionary ETF). It's understandable, but whenever I think of the American consumer that's what pops into my brain--the little creature you can't kill. So going forward this week we'll get a boatload of earnings from retailers like Nordstrom, Home Depot, Lowes, Saks and Target to name a few. XLY has been rising more than one would expect and the old saying, "the news follows the trend", must occur to validate the trend and/or keep it going.
Meanwhile, Monday's market was choppy and a low volume affair. This isn't too unusual as news was uneventful. Breadth was flat.
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We'll now get to see whether the rise in XLY (Consumer Discretionary ETF) has been warranted by good earnings and revenue data, and if can be sustained going forward. After the close Monday, investors sold Nordstrom's data. But always remember, they don't call After Hours trading the
Tuesday will feature more earnings from retailers, housing and Consumer Confidence data.
Let's see what happens and you can follow our pithy comments on
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Dave Fry is founder and publisher of
, Dave's Daily blog and the best-selling book author of
, published by Wiley Finance in 2008. A detailed bio is here: