
NYSEARCA:XLP
(Past Top Pick, July 9, 2018, Up4%) Just sold it. It was a summer play. Perhaps a little undervalued. It's been stuck. Range is $50-55. Staples (i.e. groceries) do well in summer, but less so in the winter. Why? There's a rotation into defensive stocks after summer as riskier stocks, like the FANGs, get choppy.
It is a summer play and often is. The sector broke down quite a bit. It is a trade and will get into the $55 area. It is a bit of a contrarian play. It is bouncing off the oversold level. You don't want to be involved in it for too long. It is not in an uptrend. The sector itself has its own challenges and so he will likely be in it only until October or November.