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January 26, 2025

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No changes in the top-5

At the end of this week, there were no changes in the ranking of the top-5 sectors.

  1. (1) XLY – Consumer Discretionary
  2. (2) XLF – Financials
  3. (3) XLC – Communication Services
  4. (4) XLI – Industrials
  5. (5) XLE – Energy
  6. (6) XLK – Technology
  7. (7) XLU – Utilities
  8. (11) XLB – Materials
  9. (8) XLRE – Real Estate
  10. (9) XLP – Consumer Staples
  11. (10) XLV – Health Care

In the bottom of the ranking, a few changes are showing up.

Materials rose from #11 to #8. XLRE dropped from #8 to #9. And XLP and XLV both dropped one position to #10 and #11.

As a refresher, this ranking is done based on a combination of RRG metrics on both the daily and the weekly RRGs.

Based on the positions of XLE and XLK on the weekly RRG, it may seem strange that XLE is above XLK. However, looking at the daily RRG, it can be seen that XLE made a huge move into and through leading with a very high RS-ratio and RS-momentum reading, which dragged the sector above XLK.

Consumer Discretionary

XLY has put a new higher low into place which underscores the current strength of this sector. The newly formed low at 218 is now the first support level to watch for XLY.

The first target to the upside is the level of the previous peak around 240. The uptrends in both price and relative strength are still intact.

Financials

The Financials sector now also has a new higher low in place at 47, which should also be seen as the first support level for XLF.

51.6 is the first target and resistance level on the upside. An upward break will unlock more upside for financial stocks.

Communication Services

Out of the top-5 sector charts, XLC is probably the strongest.

This week’s upward break out of the flag-like consolidation pattern must be seen as very strong and the signal for a further rally. Taking out the previous high at 102.40 will be the confirmation.

Industrials

XLI continues its bounce of support and is underway to the upper boundary of its rising channel. Intermediate resistance is expected around 144.

Relative strength remains under pressure but is still stronger than the other sectors and therefore keeping XLI inside the top 5.

Energy

Energy dropped back a bit after its rally in the last few weeks but remains solidly in the middle of its range. Here also relative strength remains under pressure.

Performance

As of the close on 1/24 the top-5 portfolio gained 3.89%, keeping up with SPY which gained 3.99% over the same period.

#StayAlert, and have a great weekend. — Julius


American tech billionaire Elon Musk made a surprise address at the campaign launch for Germany’s Alternative for Germany (AfD) party as thousands of people gathered across the country to protest the rise of the far-right party.

Musk, who spoke to the crowd in a live video, was met with huge cheers by the roughly 4,500 AfD supporters gathered inside a hall in the eastern German city of Halle on Saturday.

While speaking with party leader Alice Weidel, AfD’s candidate for chancellor, Musk reiterated his belief that AfD is Germany’s “best hope” in the upcoming general election on February 23.

Germany, Europe’s largest economy, is heading to snap elections in February after Chancellor Olaf Scholz lost a vote of confidence and his governing coalition collapsed after months of instability.

AfD has seen an upswell in support, recently becoming the first far-right party to win a state election in Germany since the Nazi era and performing well in opinion polls for the upcoming election. At the same time, the party has been criticized for its staunch anti-immigrant stance. All of Germany’s mainstream political parties have said they will not work with the AfD.

Musk, a close ally of US President Donald Trump, stressed the importance “that people take pride in Germany and being German,” a sentiment that was met with rapturous cheers at the AfD rally.

The billionaire also addressed the issue of immigration — a key issue in the election — urging Wiedel and her supporters not to lose their national pride in “some kind of multiculturalism that dilutes everything.”

Meanwhile, tens of thousands of Germans protested in Berlin and other cities on Saturday against the far-right party.

In the western German city of Cologne, police estimated a crowd of 40,000 people were demonstrating, according to the Associated Press. About 35,000 protestors gathered at Berlin’s iconic Brandenburg Gate, according to police estimates, where they sang anti-fascist songs, carried banners denouncing AfD, and displayed illuminated letters spelling “hope and resistance,” AP reported.

“Those who fuel racism and attack climate protection are not just campaigning, they are endangering lives,” climate activist Luisa Neubauer told the crowd reported AP.

Musk has become increasingly engaged in the European political landscape. In recent weeks, he has kindled an alliance with AfD party leader Wiedel. Earlier in January, the two discussed Germany’s election, economic, and political issues.

But the involvement of Musk — the world’s richest man and the owner of the social media platform X — has also been met with apprehension among government leaders in Europe.

In the United Kingdom, the prime minister accused Musk of spreading “lies” after the billionaire provoked a social media backlash against the British government. Musk has also pushed for the release of jailed far-right political activist Tommy Robinson and amplified a social media uproar that fueled anti-immigration riots.

The German government has even accused Musk of trying to influence its election over his endorsement of the AfD.

Despite the scrutiny, Musk has continued to voice his support for the populist political movements that have galvanized numerous European elections. He has also drawn parallels between the political climate in Germany and the United States while emphasizing the global impact the approaching election could have.

“I think it could decide the entire fate of Europe, maybe the fate of the world.” he told AfD supporters on Saturday, “that is the significance of this election.”

This post appeared first on cnn.com

Target on Friday said it’s rolling back diversity, equity and inclusion programs — including some that aim to make its workforce and merchandise better reflect its customers.

In a memo sent to its employees, the Minneapolis-based retailer said it will end its three-year DEI goals, stop reports to external diversity-focused groups like the Human Rights Campaign’s Corporate Equality Index and end a program focused on carrying more products from Black- or minority-owned businesses.

The memo was sent to staff Friday and viewed by CNBC. It was written by Kiera Fernandez, chief community impact and equity officer at Target.

“Many years of data, insights, listening and learning have been shaping this next chapter in our strategy,” she said in the memo. “And as a retailer that serves millions of consumers every day, we understand the importance of staying in step with the evolving external landscape, now and in the future — all in service of driving Target’s growth and winning together.”

A Target spokesperson said there are no job cuts as part of Friday’s DEI announcement.

With the move, the discounter joins a growing list of companies including Tractor Supply, Facebook’s parent Meta, Walmart and McDonald’s that have dropped DEI-related pledges and goals. Some of those companies faced pressure from conservative activists or cited the Supreme Court’s ruling blocking affirmative action at colleges — which may not compel corporations to take any action on the issue.

The company’s decision also follows President Donald Trump’s executive orders, made almost immediately after his Inauguration, to end the government’s DEI programs and put federal officials overseeing those initiatives on leave.

Not all companies have joined the trend. On Thursday, Costco said at its annual meeting that more than 98% of shareholders voted against a proposal to review risks of its DEI programs. Costco’s board of director had urged shareholders to vote it down.

Many corporations’ diversity commitments, including Target’s go back for years and were strengthened in the wake of the “Black Lives Matter” protests and the murder of George Floyd in 2020.

Four years ago, Target CEO Brian Cornell said the murder — which happened just a short distance from Target’s headquarters in its hometown — felt personal. He said it motivated him to step up Target’s diversity and equity efforts.

“That could have been one of my Target team members,” he said at the time, recounting his thoughts as he watched the video of Floyd taking his final breaths.

Target expanded its diversity goals at the time, saying it would increase representation of Black employees across its workforce by 20% over the next year. The company started a new program to help Black entrepreneurs develop, test and scale products to sell at mass retailers like Target. And it promised to spend more than $2 billion with Black-owned businesses by 2025, from construction companies that build or remodel stores to advertising firms that market its brand.

The company and its foundation also gave $10 million to support social justice groups, including the National Urban League and African American Leadership Forum.

On its website in recent years, Target has touted Cornell’s and the company’s “steadfast commitment to stand with Black families and fight against racism.” In other posts on its website, the company provided updates on its efforts to add more officers of color, reduce turnover of people of color, and increase promotions of women and minorities.

One post was titled “We Are Never Done,” and started off with a quote from Black poet and civil rights activist Maya Angelou.

Target dissolved the goals at a time when conservative politicians and activists have increasingly turned their focus on company efforts to be more inclusive.

Target had already felt the heat from conservative groups over some of its other longstanding initiatives. About two years ago, the retailer pulled items from its Pride Month collection after backlash and threats to employees about some merchandise it sold, such as “tuck-friendly” swimsuits for trans people.

Cornell said in 2023 that the backlash contributed to weaker quarterly sales for the company. He said, however, that it would continue to mark heritage months with merchandise collections, such as Black History Month and Pride Month.

Target’s employee base had grown more diverse in recent years.

About 43% of Target’s workforce was white, 31% was Hispanic/Latino, 15% was Black and 5% was Asian in the fiscal year that ended in early February 2024, according to the company’s most recent diversity report.

The company’s leadership team is less diverse than its overall workforce. Seventy-two percent of the leadership was white, followed by 11% Hispanic/Latino, 11% Asian and 6% Black.

This post appeared first on NBC NEWS