Recreational Services Index Has A Bad Year......Last Week

Tom Bowley
by Tom Bowley,
Co-founder and Chief Market Strategist, EarningsBeats.com

The Dow Jones U.S. Recreational Services Index ($DJUSRQ) fell more than 11% last week as traders completely ignored the consumer discretionary space (XLY).  The only industry group within consumer discretionary that performed worse was Business Training & Employment Agencies ($DJUSBE), which fell a staggering 28% on Friday after LinkedIn (LNKD) provided a very strong warning about 2016 prospects.  Royal Caribbean Cruises (RCL) has lost more than one third of its market cap over the past 5-6 weeks, leading the DJUSRQ to the downside.  Check out the chart:

Heavy volume has accompanied the selling, suggesting that this move lower is for real.  A move back to test the rapidly-declining 20 day EMA would represent a solid short entry.

Happy trading!

Tom

Tom Bowley
About The Author:

Tom was a CPA for 20 years before co-founding Earningsbeat.com. He also joined StockCharts for a stint, hosting SCTV’s flagship show “MarketWatchers LIVE,” providing viewers expert market commentary. Learn More 

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