Monday, September 7, 2009

Staples ready to outperform Discretionaries?




Reviewing the weekly chart of Staples vs. Discretionaries (see chart), the relative underperformance of Staples has gotten quite oversold. Its retracement from 2008 gains hit a Fibonacci 38.2% pullback, CCI and stochastics have formed higher lows, bouncing from oversold levels. Reward-Risk may favor Staples vs. Discretionaries in the short-term.










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