NEW YORK (TheStreet) -- Strong consumer spending makes for a stronger consumer staples exchange-traded fund.
The Consumer Staples Select Sector SPDR Fund (XLP) consists of 40 companies including three components of the Dow Jones Industrial Average. This exchange-traded fund, at $49.50 has a year-to-date gain of 15% through Christmas Evem beating the 13% gain for the S&P 500.
Before showing the daily and weekly charts for this ETF, here's a brief look at four of its best-known components.
Dow component Procter & Gamble (PG) is up 15% year to date and helped the Dow 30 reach its all-time intraday high at 18086 on Christmas Eve with an all-time high of its own at $93.89. This stock outperformed the Dow 30 as the index has a year-to-date gain of 8.8%.
Dow component Wal-Mart (WMT) has a solid gain of 11% year to date setting an all-time intraday high at $88.09 on Nov. 28. The momentum phase for this big box retailer was a gain of 21% from a low of $72.61 on Oct.16 to $88.09 into Nov. 28.
Dow component Coca-Cola (KO) had a huge negative jolt of volatility recently. The stock set an all-time intraday high at $45 on Nov. 28 then plunged 12% to as low as $39.80 on Dec.16. For the year, Coke has a gain of 4.5% for the year to date.
Here's the daily chart for the Consumer Staples Sector SPDR.
Courtesy of MetaStock Xenith
The daily chart for the consumer staples sector ETF shows the ETF entered 2014 above its 200-day simple moving average (green line) at $41.13, then declined to a test of this moving average between Jan. 27 and Feb. 20 as this average rose from $41.34 to $41.35.
Investors had opportunities to buy at the 200-day SMA at $43.17 on July 31 and at $43.80 on Oct.16. The rally from the Oct.16 low at $43.69 to the all-time intraday high at $49.63 set on Christmas Eve totaled 14%.
Here's the weekly chart for Consumer Staples Sector SPDR.
Courtesy of MetaStock Xenith
The weekly chart for the consumer staples sector ETF clearly shows that this market has been above its 200-week simple moving average (green line) since July 2010 with this average now at $37.86.
The weekly chart is positive but overbought with its key weekly moving average at $48.19. The momentum reading shown at the bottom of the graph in red is above the 80.00 overbought threshold at 87.35.
TheStreet Ratings team rates WAL-MART STORES INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate WAL-MART STORES INC (WMT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, good cash flow from operations, growth in earnings per share and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
You can view the full analysis from the report here: WMT Ratings Report