Welcome back for another Top Down Trade of the Week.
This is a classic leadership scan.
We start with the best sectors, then drill into the subgroups. We pick one, and then take a look at the top stocks in it.
This week’s standout is Consumer Discretionary, which jumped 4 spots in our sector rankings.
What stands out in this week’s table is the clear risk-on tone.
The most aggressive sectors are leading the way. It’s the kind of risk appetite bulls want to see accompany these new all time highs.
Consumer Discretionary, in particular, is all about demand and spending. When this sector is trending well, it’s a sign that investors are feeling confident about the economy.
Here’s a look at our overall industry rankings, where Textiles, Apparel, & Luxury Goods cracked into the Top 20.
These cover popular brands, retailers, and luxury names—companies leveraged to the consumer, for both everyday and high-end purchases.
Below are the Top 10 names in the Textiles, Apparel, & Luxury Goods group, ranked by relative strength.
Ralph Lauren $RL is my favorite setup this week, sitting around new all time highs.
Price is coiling above a key Fibonacci extension and looks ready to kick off a fresh leg higher.
As long as we’re above 273, I like it long with a target of 405.
Our team at ASC is constantly running these kinds of top-down scans. If you want access to our research and the trade ideas that come out of it, join us today—risk free.
