I was at the mall this weekend and you probably were too because, well, it was packed! There were people all over the place with huge bags of stuff. I haven't seen a mall that busy in years.
With stimulus checks hitting bank accounts all across the country, this makes sense. People are coming out of lockdowns with cash to spend and they are spending it. Sure enough, there's a way to play this economic booster shot.
XLY is a Consumer Discretionary index fund. According to the fund, it "seeks to provide precise exposure to companies in retail (specialty, multiline, internet and direct marketing); hotels, restaurants and leisure; textiles, apparel and luxury goods; household durables; automobiles; auto components; distributors; leisure products; and diversified consumer services."
The top 5 holdings are Amazon, Tesla, Nike, Home Depot and McDonalds of 63 stocks overall. You might not be in the market for a Tesla (maybe you are) but millions of Americans are shopping at the other big 4 on the list.
Technically, #XLY is in a broadening wedge with price hitting a solid support level at $155 (blue circle). With the price now above the 8/21 moving average lines, this fund gets a blue checkmark that indicates it has momentum to go higher. Once the 8 SMA (Simple Moving Average) crosses above the 21 SMA line, it's GO TIME.