SPDR Consumer Staples ETF (XLP)

(A Past Top Pick on Feb.5, 2018, Down 7.5%) A dog. He'll wait another week or two to see this turns around, but he's skeptical and will likely sell. He has a bit of hope. This sector's been oversold, and May is the time to buy consumer staples when it should rise.

There are a couple of sectors that have been ignored by the markets and this is one of them. He thinks this is the money rotational candidate over the summer. It is on trend and has fallen back to that line.

Bought this on a breakout. Money seems to be flowing from the exciting technology sector back into the boring stuff (food stores, etc.).

(A Top Pick July 20/17. Up 0.69%.) This is a summer trade. Basically it is low volume. A great place to be while you are nervous about markets.

(A Top Pick April 25/17. Up .05%.) The consumer staples went up and has come back down again. This is defensive seasonally. Usually you have more security in the earnings themselves. It also has a higher dividend.

A seasonal play, plus it is coming off a pretty good entry point. This has the classic long-term trend line in play, higher highs and higher lows, so it looks like a pretty reasonable place to buy. Over the weaker months of the year, which we are coming into now, staples are a better place to be.

Expensive right, now trading at over 20X PE, and they are slow growing stocks. But, in the summer months, investors are willing to pay a little more for that stability.

(A Top Pick May 30/16. Up 3.83%.) He just sold this on Monday because his broader indicators are showing that things are maybe a little overdone, and he was looking to raise cash.

(Top Pick Jul 21/15, Up 12.81%) The trend is pretty solid. It got a little impacted at times from the strength of the US dollar. He would continue to add to it on a down tick, if it got to the low end of its band.

(Top Pick May 30/16, Up 5.75%) He will cycle out of it in the fall.

(A Top Pick July 21/15. Up 13.01%.) Long-term it has a great trend. Just broke out of its top and he wonders if that might actually mark time when he wants to take some off the table.

He rotated out of discretionaries for the summer. He did it a bit early. It is also a defensive sector over the summer. It is more economically sensitive.

(Top Pick Apr 20/15, Up 8.10%) This is one of the sectors he will buy early each year. He likes buying breakouts. It has a nice long base. It is probably going to do okay over the next few months.

The theme right now is defensive, and this is a defensive sector. His conditions for a bull market is that the market has to be above the 200 day moving average and making new highs, and it is not. He went out of the discretionary (XLY-N) which was starting to show some weakness lately. XLP is starting to break out of a long consolidation which is good news for that sector. Seasonally this one tends to take on in the summer, and he is in a bit early.

(A Top Pick Feb 9/15. Up 4.63%.) This has been in a pretty stable band for quite a while.