“In this case both the 50 and 200 day are trying to rolling over and trend lower. This alone, at the very least, tells us that staples will have a hard time sparking a sustainable rally here,” he said.
XLP’s top-10 holdings, which combine for almost 64% of the ETF’s weight, include Warren Buffett favorites Procter & Gamble, Coca-Cola (NYSE: CO) and Wal-Mart (NYSE: WMT) as well as Philip Morris (NYSE: MO), PepsiCo (NYSE: PEP) and Altria (NYSE: MO). [Coke, Green Mountain Lift This Staples ETF]
The 10-pack below shows none of these stocks are in good shape with regards to their moving averages. Several members of XLP’s top-10 lineup have made a death cross, the scenario where a shorter-term moving average, in this case 50 days, moves below a longer-term moving average like the 200-day. (Click to Enlarge)
Tom Lydon’s clients own shares of Coca-Cola and Procter & Gamble.