GAP AND GENERAL MOTORS HELP LEAD XLY HIGHER TODAY -- REBOUND IN TRAVEL & TOURISM STOCKS BOOSTS EXPEDIA

GAP AND GENERAL MOTORS HELP LEAD CYCLICALS HIGHER... My weekend message showed the Consumer Discretionary SPDR (XLY) setting new records.   It's hitting another one today led higher by cruise lines, clothing, travel & tourism, gambling, and apparel retailers.   Two stocks in particular show up on today's Market Carpets page of the top five percentage gainers in the XLY.  Chart 1 shows Gap (GPS) climbing 6% and moving further above its 200-day moving average.   Its relative strength line in the upper box is also rising.   General Motors (GM) is also having a good chart day.  Chart 2 shows GM bouncing sharply off its 200-day line after climbing above it just last week.  Its relative strength ratio in the upper box is starting to rebound as well.   Some encouraging news on the vaccine front is helping lift stocks tied to travel & tourism.   Which helps explain our third chart.

EXPEDIA CLEARS 200-DAY LINE... Stocks tied to travel and tourism are getting some help today from a report that a promising vaccine may be ready by the end of the year.   One of those stocks was among today's biggest percentage gainers in the XLY and is today's third chart.  Chart 3 shows Expedia (EXPE) trading above its 200-day line for the second day in a row.  Its relative strength line in the upper box is rising as well.   It's nice see some of the more economically-sensitive cyclical stocks starting to attract new investor interest.

SECTOR RECAP... Nine sectors are in the black today led by energy, financials, materials, industrials, and consumer cyclicals.   The two losers are real estate and healthcare.   A strong rebound in airlines is giving a lift to the industrial sector and the transports.   A modest uptick in bond yields may be lending some support to bank stocks which are also up today.   Higher energy prices are helping support that stock sector.