The Consumer Discretionary sector has been on a tear this year with the second best YTD gains (19.75%) behind only the Tech sector. This is a sector that is comprised of many names that are huge everyday brands in the life of the American consumer, so the fact that they are doing well suggests that the consumer remains strong.
Beginning with a quick glance at auto parts retailers, Autozone (AZO), Genuine Parts (GPC), and O’Reilly Automotive (ORLY) have all held onto solid uptrends for the past year, even through the volatility late in 2018. In 2019, the angle of these uptrends has increased considerably, and they have now reached extremely overbought levels with 15%+ YTD gains. AZO has gained even more at 26.99%.
Chipotle (CMG), McDonald’s (MCD), and Yum! Brands (YUM) have also seen similarly solid runs. While MCD has been a bit more volatile given its pullback earlier this year, all three stocks have reached 52-week highs lately. CMG has been truly explosive rising 64.96% this year alone! Even at its current levels, though, the stock has not yet reached extreme overbought levels. Of the three, Yum! Brands (YUM) has perhaps been the most steady in its uptrend over the past year.
The major home improvement stores also boast attractive chart patterns. Home Depot (HD) has yet to reach a 52 week high, but the stock has been in a solid uptrend so far this year and now isn’t far off. Major competitor Lowe’s (LOW) has a near identical chart though seems to be a bit further ahead of HD as it hit a 52-week high on Monday. Tractor Supply’s (TSCO) chart may not look as similar to LOW and HD, but it is yet another name with a solid uptrend over the past year, especially since the start of 2019.
Whereas the highlight of most of the sector is the uptrends, Hasbro (HAS) has been a bit of an outlier with its downtrend. But that downtrend may soon be in the rearview mirror as the stock is attempting to break its string of lower highs. The past few day’s trading has brought the stock well above the downtrend line and the 50-DMA. Since the start of the year, HAS has also not made a new low. The next point of resistance to watch would be the 200-DMA, which put a halt to the rally in February. The charts below were all taken from our Chart Scanner tool, and if you start a two-week free trial to Bespoke Premium now, you will receive instant access to this great tool and much more.