Chart of the Day - Wednesday, November 13th, 2019

Today’s Chart of the Day was shared on Twitter by Shane Murphy (@murphycharts). It's a ratio chart of the Equally-Weighted Consumer Discretionary ETF, $RCD, versus the Equally-Weighted Consumer Staples ETF, $RHS. This ratio is an important risk-on/risk-off indicator for the broader market. Bulls want to see the more aggressive Consumer Discretionary stocks outperforming the safer Consumer Staples stocks. In yesterday's Chart of the Day we discussed Amazon's massive weighting in the Consumer Discretionary sector, with the stock representing nearly 30% of $XLY. Shane points out that this ratio isn't sending a very bullish message to the broader market right now, even when you remove Amazon from the equation by using the Equally-Weighted versions of the sectors. He notes that the ratio is still in a downtrend and RSI failed to reach overbought conditions.